sebi:QJA/AA/NRO/NRO-DIV-III/31208/2024-25
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Facts / Headnote
Directions issued to refund monies collected from investors with interest at 15% per annum, along with other directions under Sections 11(1), 11(4), 11A and 11B(1) of the SEBI Act, 1992
Provisions invoked
- s. 19
- s. 55A
- s. 80
- s. 22
- s. 73
- s. 28A
- s. 4A
- s. 45
- s. 67(3)
- s. 67
- s. 58
- s. 56
- s. 73(2)
- s. 434
- s. 465
- s. 45I
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
Regulations
- Reg. 107
Parties
- Re India Infratech Limited (RIIL)
- Mr. Nitesh Kumar Singh (Noticee No. 2, Managing Director)
- Mr. Shantanu Singh (Noticee No. 3)
- Mr. Ameet Singh (Noticee No. 4)
- Mr. Awdesh Kumar Singh (Noticee No. 5)
- Mr. Chandra Vikram Singh (Noticee No. 6)
- Mr. Ajay Singh (Noticee No. 7)
Holding
RIIL was found to have violated Sections 56(1), 56(3), 60, 64, 70(1), 73, 80 read with Section 67 of the Companies Act, 1956 by issuing RPS to 13,662 allottees (far exceeding 49 persons) during F.Y. 2010-11 and 2011-12, constituting a public issue without complying with prospectus and listing requirements. The company and its directors were directed to refund the monies collected (Rs. 16,88,87,360) with interest at 15% per annum to investors.
Full text
Order in the matter of Re India Infratech Limited Page 2 of 44 9708 dated October 17, 2011) for 1210 shares in the name of Apu Ch Sarkar signed by two directors.
Order in the matter of Re India Infratech Limited Page 3 of 44 3. In view of the details provided by the Company with respect to the RPS, it was, prima facie, observed that the Company had issued RPS to more than 49 persons during the F.Y. 2010-11 and 2011-12 which is in violation of Sections 56(1), 56(3), 60, 64, 70(1), 73, 80 read with Section 67 of the Companies Act, 1956. Further, SEBI had issued letters dated February 11, 2022, March 25, 2022 and April 08, 2022 to RIIL and its directors, by providing the investors an option to surrender their securities and give them refund in accordance with the procedure detailed in the SEBI Circular CIR/CFD/DIL3/18/2015 dated December 31, 2015 and file for compounding of violation with the National Company Law Tribunal, giving them an opportunity to avoid penal action.
Order in the matter of Re India Infratech Limited Page 4 of 44 SHOW CAUSE NOTICE, REPLIES AND PERSONAL HEARING: 6. A common Show Cause Notice dated May 10, 2024 (hereinafter referred to as ‘SCN’) was issued to the Noticees calling upon them to show cause as to why suitable directions under sections 11(1), 11(4), 11A and 11B(1) of the SEBI Act, 1992 read with Section 5 of the Companies Act, 1956, including a direction to refund the monies collected from the investors along with interest to the investors, should not be issued against them for the alleged violation of the provisions of Sections 56(1), 56(3), 60, 64, 70(1), 73, 80 read with Section 67 and Section 5 of the Companies Act, 1956 and Section 465 of Companies Act, 2013 .
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Source: SecMarx — sebi:QJA/AA/NRO/NRO-DIV-III/31208/2024-25. 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.