sebi:WTM/MPB/EFD-1-DRA-IV/57/2017

SEBI · SEBI · 2015-08-06 · Madhabi Puri Buch, Whole Time Member

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Facts / Headnote

Directions issued: RIHL and its directors jointly and severally directed to refund monies collected through NCDs with 15% per annum interest; directors restrained from securities market and associating with listed/public companies for 4 years from completion of refunds; debenture trustees restrained from securities market for 4 years; various compliance, inventory, escrow, and reporting directions issued.

Provisions invoked

Regulations

Parties

Holding

RIHL's offer of NCDs to at least 147 investors was a 'public issue' under the first proviso to Section 67(3) of the Companies Act, 1956, and RIHL and its directors violated Sections 56, 60, 73, 117B, 117C of the Companies Act, 1956 and the ILDS Regulations. The appointment of Shri Chapal Biswas and Shri Chinmoy Ghatak as debenture trustees without registration violated Section 117B of the Companies Act, 1956 and Section 12(1) of the SEBI Act read with Regulation 7 of the Debenture Trustees Regulations.

Full text

Order in the matter of Rahul Inn Hospitality Limited Page 2 of 30 without complying with the provisions of the Companies Act, 1956; Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) and the Rules and Regulations framed thereunder including the Securities and Exchange Board of India (Issue and Listing of Debt Securities), Regulations, 2008 (hereinafter referred to as “ILDS Regulations”).

Order in the matter of Rahul Inn Hospitality Limited Page 3 of 30 2012 , 2012-2013 and 2013-2014 and raised at least an amount of Rs.24.67 Lakh as shown below: *^ No. of allottees and funds mobilized has been collated from the documents submitted with the complaints received by SEBI. However, actual no. of allottees and amount mobilized could be more than the above indicated figures.

Order in the matter of Rahul Inn Hospitality Limited Page 4 of 30 Regulations"). 8. In view of the prima facie findings on the violations, the following directions were issued in the said interim order dated August 06, 2015 with immediate effect: i. “RIHL (PAN: AAFCR6421E) shall forthwith cease to mobilize fresh funds from investors through the Offer of NCDs or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions; ii. RIHL and its present Directors, viz. Shri Abhijit Majumdar (PAN: AJCPM9999F; DIN: 03619374), Shri Dipankar Gupta (DIN: 02408609) and Shri Mrinmoy Bose (PAN: AMOPB0512G; DIN: 03619376), are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders; iii. The past Director of RIHL, viz. Shri Rahul Banerjee, is prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders; iv. RIHL and its abovementioned past and present Directors, are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further

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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-IV/57/2017. 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.