sebi:WTM/PS/13/NRO/MAY/2015
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Facts / Headnote
Application dated January 22, 2015 filed by Alchemist Infra Realty Limited rejected and disposed of; SEBI directed to initiate prosecution, adjudication, police referral, and winding-up referral proceedings.
Provisions invoked
- s. 24
- s. 12
Regulations
- Reg. 73
- Reg. 73(2)
- Reg. 3
Parties
- Alchemist Infra Realty Limited
- Mr. Brij Mohan Mahajan
- Mr. Narayan Madhav Kumar
- Mr. Balvir Singh
- Mr. Chandra Shekhar Chauhan
- Mr. Sunil Kanti Kar
Holding
SEBI rejected Alchemist Infra Realty Limited's request for a further 24-month extension of time to refund investors and its requests regarding regulation 73 Information Memorandum and recall of direction (c), and directed initiation of prosecution, adjudication, police referral, and winding-up referral proceedings against the Company and its directors.
Full text
Page 2 of 12 (ii) SEBI would make a reference to the State Government/Local Police to register a civil/criminal case against Alchemist Infra Realty Limited and its directors and its managers/persons in-charge of the business and its schemes for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds ; and (iii) SEBI would make a reference to the Ministry of Corporate Affairs, to initiate the process of winding up of the company, Alchemist Infra Realty Limited.
Page 3 of 12 {Emphasis supplied} 3. The further appeals (in Appeal Nos.7924 and 7925 of 2013) filed by the Company before the Hon'ble Supreme Court of India were dismissed vide Order dated September 05, 2014, with liberty to 'work out the remedy elsewhere'.
Page 4 of 12 f. It is also pertinent to note that in its counter affidavit filed before the Hon'ble Supreme Court, SEBI inter alia stated that regulation 73 of the CIS Regulations was required to be followed by the Company and was free to do so inasmuch as SEBI has not stopped it from doing so. g. Although, subsequent to September 05,2014, the Company was desirous of sending the Information memorandum to the investors as contemplated under regulation 73 of the CIS Regulations, no such Memorandum could be sent as no intimation was received from SEBI as provided under regulation 73(2). The Company was further advised that such Information Memorandum could not be issued until such intimation was received from SEBI. While the Company was in the process of finalizing the steps to be taken for obtaining the intimation/approval vis-a-vis issuance of the Information Memorandum, it became necessary for the Company to inter alia apply for extension of time to comply with the directions as contained in the Order dated June 21, 2013. h. Consequently, the Company is making a composite application to SEBI for necessary order to comply with the provisions of regulation 73 of the CIS Regulations as well as for extension of time to implement the direction contained in the SEBI Order dated June 21, 2013. i. The Company and its directors never acted in contravention of regulation 73 of the CIS Regulations. However, despite the provisions of regulation 73 being repeatedly held to be applicable t
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Source: SecMarx — sebi:WTM/PS/13/NRO/MAY/2015. 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.