sebi:Order/SR/SJ/2020-21/8539-8545/51-57
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Facts / Headnote
Charges established; penalty imposed on Noticees 1 to 5 jointly and severally; proceedings against Noticees 6 and 7 abated due to death
Provisions invoked
- s. 11B
- s. 11A
- s. 15
- s. 12
- s. 15H
- s. 27
- s. 15I
- s. 15J
- s. 28A
- s. 291
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(2)(t)
- Reg. 4(t)
Parties
- Pancard Clubs Limited (Noticee 1)
- Manish Kalidas Gandhi (Noticee 2)
- Chandrasen Ganpatrao Bhise (Noticee 3)
- Ramachandran Ramakrishnan (Noticee 4)
- Shoba Ratnakar Barde (Noticee 5)
- Sudhir Shankar Morvekar (Noticee 6)
- Usha Arun Tari (Noticee 7)
Holding
PCL's holiday/timeshare schemes constituted an unregistered Collective Investment Scheme in violation of Section 12(1B) of the SEBI Act read with Regulation 3 of the CIS Regulations, and Noticees 1 to 5 violated Regulation 4(2)(t) of the PFUTP Regulations. A penalty of Rs. 20 crore was imposed jointly and severally on Noticees 1 to 5 under Section 15HA of the SEBI Act.
Full text
Adjudication order in the matter of Pancard Clubs Limited Page 2 of 36 time share business without obtaining a certificate of registration, in accordance with SEBI (Collective Investment Scheme) Regulations, 1999 (hereinafter referred to as ‘SEBI (CIS) Regulations’), from SEBI. APPOINTMENT OF ADJUDICATING OFFICER
Adjudication order in the matter of Pancard Clubs Limited Page 3 of 36 4. As common question of law and facts is involved in the separate adjudication proceedings initiated against PCL and its directors, I decide to dispose of the said adjudication proceedings by passing a common order for both i.e. the Noticee 1 and Noticees 2 to 7. SHOW CAUSE NOTICES, REPLIES AND PERSONAL HEARINGS
Adjudication order in the matter of Pancard Clubs Limited Page 4 of 36 USA, Thailand and New Zealand. It owns and operates hotel properties at 31 locations across the globe with 22 hotels in India, four hotels in USA, one hotel in New Zeeland and condominium units in Thailand. It also has reciprocal club affiliation with several clubs and resorts across India. A copy of Brochure was provided to the Noticee as Annexure II to the said show cause notice. c) PCL is in the business of providing timeshare services for over 16 years to thousands of families across India. d) PCL is offering following schemes to general public. i. Pancard Clubs-Desire Holiday for 37 months ii. Pancard Clubs-Relax Holiday for 3.3 years (39 months) iii. Sunrise Holiday for 5 years iv. Devine Holiday for 66 months v. Pancard Clubs- Delight Holiday for 6.3 years (75 months) vi. New Royal Holiday 9 years vii. New regular Holiday for 10 years viii. Pancard Clubs-New premium Holiday for 10 years. e) From the perusal of the scheme details provided by PCL it was observed that Pancard Club- Relax Holiday for 3.3 years, Delight Holiday for 6.3 years and New Royal Holidays for 9 years have some common features. The details of these schemes of PCL are provided as under: Pancard Clubs –Relax Holiday for 3.3 years (39 months): (with effect from May 02, 2008): Current Average Tariff for three room nights Offer price of three room nights at a discount Minimum room nights to be bought Estimated surrender value of three
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Source: SecMarx — sebi:Order/SR/SJ/2020-21/8539-8545/51-57. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.