sebi:WTM/MPB/EFD-1-DRA-IV/37/2019
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Directions issued: Raju Ghosh jointly and severally liable with GRAPL to refund amounts collected with 15% p.a. interest; Munmun Ghosh, Avijit Chowdhury, Bibekananda Jana held responsible for acts during directorship but not liable for refund under Section 73(2); all four Noticees debarred from securities market for 4 years from completion of refunds; appropriate action to be initiated against all four Noticees.
Provisions invoked
- s. 19
- s. 27
- s. 73
- s. 28A
- s. 67(3)
- s. 73(2)
- s. 60
- s. 27(2)
- s. 56(1)
- s. 56(4)
- s. 141
Parties
- Raju Ghosh
- Munmun Ghosh
- Avijit Chowdhury
- Bibekananda Jana
Holding
Raju Ghosh, as Managing Director of GRAPL at the time of allotment of Redeemable Preference Shares on September 30, 2012, is an officer in default under Section 5(a) of the Companies Act, 1956 and is jointly and severally liable with GRAPL to refund Rs. 6.531 crores collected from investors with 15% per annum interest under Section 73(2). Munmun Ghosh, Avijit Chowdhury and Bibekananda Jana are not liable for refund under Section 73(2) since a Managing Director (Raju Ghosh) was in place, but all four Noticees are debarred from the securities market for 4 years.
Full text
Order in respect of Raju Ghosh and Others in the matter of M/s G R Agro Project Limited Page 2 of 25 Companies Act, 1956 read with section 27(2) of the SEBI Act, 1992.
Order in respect of Raju Ghosh and Others in the matter of M/s G R Agro Project Limited Page 3 of 25 of Section 60 of the Companies Act, 1956 is on the company, and every person who is a party to the non-compliance of issuing the prospectus as per the said provision. Therefore, GRAPL and its directors are held liable for the violation of sections 56(1), 56(3) and 60 of the Companies Act, 1956.
Order in respect of Raju Ghosh and Others in the matter of M/s G R Agro Project Limited Page 4 of 25 liability continues till all the repayments are made, the above said directors are co- extensively responsible along with the Company for making refunds along with interest under section 73(2) of the Companies Act, 1956 read with rule 4D of the Companies (Central Government's) General Rules and Forms, 1956, and section 27(2) of the SEBI Act. Therefore, I find that GRAPL and its Directors, viz. Shri Raju Ghosh, Munmun Ghosh, Shri Avijit Chowdhury, Shri Bibekananda Jana are jointly and severally liable to refund the amounts collected from the investors with interest at the rate of 15 % per annum, for the non-compliance of the above mentioned provisions.
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/MPB/EFD-1-DRA-IV/37/2019. 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.