sebi:WTM/AN/IVD/ID5/31715/2025-26
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Held Citrus operated unregistered CIS and Noticee nos. 2 to 5 liable as directors; restrained all Noticees from accessing/dealing in securities till all CIS monies refunded and from disposing assets except for refunds, subject to Supreme Court orders; issued no separate refund direction as refund under Supreme Court supervision is in progress.
Provisions invoked
- s. 11A
- s. 19
- s. 12(1)
- s. 11B
- s. 12
- s. 27
- s. 30
- s. 14
Regulations
- Reg. 7
- Reg. 65
- Reg. 3
Parties
- Citrus Check Inns Limited
- Omprakash Basantlal Goenka
- Prakash Ganpat Utekar
- Venkatraman Natarajan
- Narayan Shivram Kotnis
Holding
The 7 holiday plans (Gem, Jewel, Crystal, Crown, Pearl, Glory and Sapphire) promoted by Citrus are Collective Investment Schemes under section 11AA(1) of the SEBI Act operated without registration in violation of section 12(1B) and Regulation 3, with Noticee nos. 2 to 5 responsible as directors. Noticees are restrained from the securities market till refund and barred from alienating assets except for refunds, subject to Supreme Court orders.
Full text
Final Order in the matter of Citrus Check Inns Limited Page 2 of 29 obtaining a certificate of registration as required under Section 12(1B) of the SEBI Act and Regulation 3 of the SEBI (Collective Investment Scheme) Regulations, 1999 (“CIS Regulations”). In view of such findings, SEBI passed an ad interim ex- parte order (“Interim Order”) dated June 03, 2015 against Citrus and its four directors namely Omprakash Basantlal Goenka, Prakash Ganpat Utekar, Venkatraman Natarajan and Narayan Shivram Kotnis inter alia issuing the following directions: “29. …. •not to collect any fresh money from "customers"/ investors under its existing scheme; •not to launch any new schemes or plans in this company, •not to raise any fresh moneys from any other existing company within the group; •not to float any new companies to raise fresh moneys under such schemes, •to immediately submit the full inventory of the assets obtained through money raised by Citrus; •not to dispose of or alienate any of the properties/assets obtained directly or indirectly through money raised by Citrus; •not to divert any funds raised from public at large, kept in bank account(s) and/or in the custody of Citrus or group companies or promoters or LLPs or Proprietary concerns or any person directly or indirectly controlled through shareholding or management by Citrus; …..”
Final Order in the matter of Citrus Check Inns Limited Page 3 of 29 4. SEBI challenged the aforesaid SAT Order dated February 03, 2016 before the Hon’ble Supreme Court. The Hon’ble Supreme Court vide its order dated November 09, 2016 set aside SAT order dated February 03, 2016 and directed SEBI to complete the investigation and determine whether Citrus business is CIS or not and directed Citrus not to alienate or create encumbrance on assets without the prior permission of SEBI.
Final Order in the matter of Citrus Check Inns Limited Page 4 of 29 SEBI to proceed in accordance with the law. Accordingly, a Show Cause Notice (“SCN”) dated March 28, 2025 was issued to the Noticees.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/AN/IVD/ID5/31715/2025-26. 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.