sebi:WTM/MPB/EFD-1-DRA-IV/35/2019
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Facts / Headnote
Mr. Arup Kumar Roy held jointly and severally liable with IIL and other directors to refund money collected during his directorship through RPS and NCDs with 15% interest, with asset freeze for refunds, market access bar till 4 years after completion of refunds, and recovery under section 28A SEBI Act on default.
Provisions invoked
- s. 19
- s. 27
- s. 73
- s. 28A
- s. 56
- s. 73(2)
- s. 60
- s. 56(1)
- s. 56(4)
Regulations
- Reg. 4(2)(a)
Parties
- Mr. Arup Kumar Roy
Holding
Mr. Arup Kumar Roy, director of Infocare Infra Limited from January 18, 2011 to February 11, 2012, is an officer in default and jointly and severally liable to refund money collected by IIL during his tenure through deemed public issues of RPS and NCDs with 15% interest, and is restrained from the securities market till 4 years after completion of refunds.
Full text
Order in respect of Mr. Arup Kumar Roy in the matter of M/s Infocare Infra Limited Page 2 of 25 “… … 8. In view of the foregoing, I, in exercise of the powers conferred upon me under Sections 11, 11(4), 11A and 11B of the SEBI Act, hereby issue the following
Order in respect of Mr. Arup Kumar Roy in the matter of M/s Infocare Infra Limited Page 3 of 25 vii. IIL and its abovementioned present Directors shall not dispose of any of the properties or alienate or encumber any of the assets owned/acquired by that company through the Offer of Redeemable Preference Shares and Offer of NCDs, without prior permission from SEBI; viii. IIL and its abovementioned present Directors shall not divert any funds raised from public at large through the Offer of Redeemable Preference Shares and Offer of NCDs, which are kept in bank account(s) and/or in the custody of IIL; ix. IIL and its abovementioned present Directors shall furnish complete and relevant information (as sought by SEBI letter dated August 4, 2014), within 21 days from the date of receipt of this Order. x. The Debenture Trustee, viz. Shri Pawan Kumar Agarwal (PAN: ADHPA8420C), is prohibited from continuing with its assignment as debenture trustee in respect of the Offer of NCDs of IIL and also from taking up any new assignment or involvement in any new issue of debentures, etc. in a similar capacity, from the date of this order till further directions…….”
Order in respect of Mr. Arup Kumar Roy in the matter of M/s Infocare Infra Limited Page 4 of 25 (d) That Noticee was not regular in the Company and nobody had ever contacted him or took consent or opinion for the business of IIL. (e) That in all other sister companies of IIL, Noticee had minimum negligible shares and have resigned from those companies within a month or so of their formation. The activity of fund mobilization by way of RPS and NCD was without taking his consent and no related documents of such business activities were ever shared with him. Noticee had neither participated nor promoted any of such activities during his tenure of director of the company. He had not attended any meetings of the Company. (f) That Noticee had not received any notice for attending board meeting from IIL and had no access to the bank accounts or any financial instrument of the Company. (g) That there were hardly any requirement of his expertise during his directorship with IIL as no major IT or Telecom projects were taken up by IIL during the period when he was director. (h) That Noticee work was only related to IT & ITeS and telecom and he was never contacted for day to day activities of IIL more particularly for raising funds by way of NCD and RPS. (i) That Noticee had attended only one meeting of the Company i.e. regarding relieving on resignation which was accepted on February 11, 2012. No salary or any honorarium was paid to him during his tenure as director. Noticee resigned fr
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-IV/35/2019. 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.