sebi:WTM/MPB/EFD-1-DRA-3/48/2018

SEBI · SEBI · 2015-06-26 · Madhabi Puri Buch, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

EIIL directed to wind up its unregistered collective investment schemes and refund money collected with returns within three months; present directors Shri Gurpreet Singh Sidhu and Shri Gurlal Singh directed to ensure compliance; no directions issued against Shri Sunil Singh and Shri Ashok Kumar (benefit of doubt), with recovery proceedings reserved if further material emerges.

Provisions invoked

Regulations

Parties

Holding

EIIL's 'sale of plots' schemes satisfied all four conditions of Section 11AA(2) of the SEBI Act and thus constituted an unregistered collective investment scheme, contravening Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations. EIIL and the directors who were in office during the fund mobilization period (Shri Gurpreet Singh Sidhu, Shri Harminder Singh, Shri Prashant Sharma) are liable to refund the amounts collected.

Full text

Order in the matter of Emerging India Infra Limited Page 2 of 28 complaints from some persons against EIIL alleging illegal mobilization of funds and undertook an enquiry to ascertain whether EIIL had launched collective investment schemes without obtaining a certificate of registration from SEBI.

Order in the matter of Emerging India Infra Limited Page 3 of 28  not to collect any fresh money from investors under the existing schemes;  not to launch any new schemes or plans;  not to float any new companies/firm to raise fresh moneys;  to immediately submit the full inventory of the assets including land acquired through money raised by EIIL;  not to dispose of or alienate any of the properties/assets acquired directly or indirectly through money raised by EIIL;  not to divert any funds raised from public at large which are kept in bank account(s) and/or in the custody of EIIL;  to furnish all the information/details sought by SEBI vide letter dated April 28, 2014 within 15 days from the date of receipt of this order, including, i. Details of amounts mobilized, ii. Details of amounts repaid till date, iii. Scheme wise list of investors and their contact numbers and addresses including,  the list of investors to whom land has been allotted and got registered and  list of investors who have been repaid. iv. Details of commission paid on amounts mobilised above, v. Details of agents along with their addresses, etc., vi. Audited Accounts for the last financial years i.e. FY 2012-13, 2013-14, and 2014-15; vii. PAN of the aforementioned Directors.

Order in the matter of Emerging India Infra Limited Page 4 of 28 order further stated that the concerned persons may also indicate whether they desired to avail themselves an opportunity of personal hearing on a date and time to be fixed on a specific request made in that regard.

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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-3/48/2018. 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.