sebi:PM/NR/2020-21/10086-10088
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Facts / Headnote
The Adjudicating Officer found that the Noticees operated an unregistered collective investment scheme in violation of Section 12(1B) of the SEBI Act and Regulations 3, 5, 73 and 74 of the SEBI (CIS) Regulations. Noticees 1 and 2 were also found to have failed to comply with SEBI’s directions dated November 26, 2013. Monetary penalties were imposed, but the amount is not available in the supplied text.
Provisions invoked
- s. 11A
- s. 11
- s. 24
- s. 15
- s. 19
- s. 12
- s. 15H
- s. 15I
- s. 15J
- s. 28A
- s. 15D
- s. 30
- s. 26
Regulations
- Reg. 4
- Reg. 71
- Reg. 74
- Reg. 73
- Reg. 65
- Reg. 11
- Reg. 3
- Reg. 5
- Reg. 6(1)
- Reg. 2(2)
Parties
- Orient Resorts (India) Pvt., Ltd. (Noticee 1)
- Dilpesh V Shah (Noticee 2)
- Darshanbhai Arvindbhai Shah (Noticee 3)
Holding
The teak-plantation scheme operated by ORIPL was a collective investment scheme that was required to be registered with SEBI, and the Noticees’ operation of it without registration contravened the SEBI Act and CIS Regulations. Noticees 1 and 2 also failed to comply with SEBI’s November 26, 2013 directions, attracting monetary penalties; the supplied text does not state the penalty amounts.
Full text
Adjudication Order in respect of Orient Resorts (India) Pvt., Ltd., Page 2 of 25 e) ORIPL had issued Teak Sapling Sale Certificate / Unit Certificate to the investors. f) The units so issued were easily transferable on payment of a service fee of ₹15. g) The teak trees were not investor-wise identifiable. h) The plantation would be managed by ORIPL with the help of an Advisory Board.
Adjudication Order in respect of Orient Resorts (India) Pvt., Ltd., Page 3 of 25 6. Based on the findings of the examination, SEBI initiated Adjudication proceedings against the Noticees and appointed the undersigned as the Adjudicating Officer vide Order dated June 8, 2017 under Section 19 of SEBI Act read with Sub-section 1 of Section 15-I of the SEBI Act, 1992 and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as “SEBI Adjudication Rules”) to inquire into and adjudge under Section 15D(a) and 15HB of the SEBI Act, as per the following: Sl. No. Name of the Noticee Alleged violations in brief Charging provisions Penal provisions 1 2 Orient Resorts (India) Pvt., Ltd., Dilpesh V Shah Operating unregistered CIS Section 12(1B) of SEBI Act and Regulations 3, 5, 73 and 74 of SEBI (CIS) Regulations. Section 15D(a) of SEBI Act Non-compliance of Directions issued by SEBI vide Order dated November 26, 2013 Section 15HB of SEBI Act 3 Darshanbhai Arvindbhai Shah Operating unregistered CIS Section 12(1B) of SEBI Act and Regulations 3, 5, 73 and 74 of SEBI (CIS) Regulations. Section 15D(a) of SEBI Act
Adjudication Order in respect of Orient Resorts (India) Pvt., Ltd., Page 4 of 25 (a) The fact that the cognizance of the said complaint and other complaints have already been taken by the WTM, SEBI and a consolidated final Order has been passed against all such complaints, references, and the Noticees have also duly complied with such Order. Therefore, as on date, no disputes exist and no complaint/reference remains unresolved, so as to warrant issuance of the present notice.
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Source: SecMarx — sebi:PM/NR/2020-21/10086-10088. 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.