sebi:WTM/KMA/OIAE/391/06/2011
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Facts / Headnote
Proceedings disposed of without any directions
Provisions invoked
- s. 19
Parties
- Pankaj Agro Protinex Limited
- Mr. Vipul K. Dedakiya
- Mr. Bharat R. Bhalodia
- Mr. Pravin Keshavlal Patel
- Mr. Kirti Keshavlal Patel
- Ms. Devyami Pravinkumar Patel
- Mr. Arun M Kothari
Holding
The proceedings initiated against Pankaj Agro Protinex Limited and its directors by show cause notices dated November 6, 2009 and November 10, 2009 were disposed of without any directions, as the case was not found fit for issuing directions restraining the company from accessing the securities market.
Full text
Page 2 of 5 2008 to Mr. Pravin Kumar K. Patel (Chairman and Managing Director of the company) advising the company to resolve the complaints and to submit a status report. Reminder letter dated December 22, 2008 was again sent to Mr. Pravin Kumar K. Patel advising to redress all the pending grievances within thirty days from the date of receipt of the said letter. Thereafter, another letter dated February 13, 2009 was sent to the company advising it to provide requisite information and submit the necessary enclosures with the Action Taken Report. Since no reply was received from the company as regards the redressal of complaints, SEBI issued a public notice dated March 23, 2009 in the website of SEBI (www.sebi.gov.in) advising the company to resolve the pending investor grievances and to submit the Action Taken Report. Despite such letters and public notice, the company had not submitted the action taken report on the status of any redressal.
Page 3 of 5 of the aforesaid letters, it was observed that the Action Taken Reports did not contain complete information on the action taken on the complaint, such as, copy of intimation to the investors, dispatch particulars and proof. In view of the above, a letter dated January 21, 2010 was issued to the company and its directors advising them to submit the complete Action Taken Report to SEBI with necessary supporting documents, as per the prescribed format. Thereafter, vide letter dated June 2, 2010, an opportunity of hearing was granted to the company and its directors on August 5, 2010. A paper publication was also made by SEBI on June 13, 2010, in respect of the said show cause notices and the hearing, in various newspapers having nationwide and statewide circulation including ‘Hindustan Times’ (Mumbai, New Delhi & Kolkata Edition) ‘Sandesh’ (Rajkot Edition) and ‘Gujarat Samachar’ (Vadodara Edition). In the meantime, a copy of the Annual Returns filed by the company was received from the Registrar of Companies (RoC), Gujarat. According to the Annual Report, Mr. Arun M. Kotari resigned from the company on September 29, 2007. Subsequently, the company, vide its letter dated July 12, 2010 filed its reply which inter alia stated that it had redressed all investor’s grievances and that it had not received any communication from any of the investors thereafter. It was also stated that the majority of the complaints were related to non-receipt of Refund Orders in the public
Page 4 of 5 public issue made by the company during 1992, therefore, the proof of dispatch of Share certificates/refund orders sent during that time is not available as more than seventeen years have elapsed thereafter. It was further submitted that the promoters, have made payments of the refund amount to the concerned investors out of their own resources. Although the company has stated that all the complaints have been redressed, there were 29 complaints pending from the initial list, as on January 28, 2011. Since the complaints were pending, the company was advised by SEBI, vide letter dated March 16, 2011 to inform the current status of the pending complaints. The company, replied vide letter dated March 21, 2011 forwarding the action taken report of all the sixty one complaints as per the initial list without any enclosures and therefore, the company was advised to provide the proper action taken report in respect of thirty complaints In reply, the company forwarded the action taken report in respect of such complaints. Thereafter, SEBI conducted a validation exercise by issuing preprinted inland letters to the complainants requesting them to send a copy of the complaint, in case it still remains unresolved. SEBI has not received any response from the complainants, till date.
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Source: SecMarx — sebi:WTM/KMA/OIAE/391/06/2011. 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.