sebi:WTM/PS/15/CIS/NRO/JULY/2013
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Facts / Headnote
Directions issued restraining HBN and its directors from soliciting/collecting further money, requiring submission of a winding-up and repayment proposal within 30 days, and prohibiting disposal of properties except for winding up and repaying investors; order without prejudice to further action under the SCN dated November 16, 2012.
Provisions invoked
- s. 19
Regulations
- Reg. 65
Parties
- HBN Dairies and Allied Limited
- Mr. Harmender Singh Sran
- Mr. Satnam Singh Randhawa
- Mr. Amandeep Singh Sran
- Mr. Gajraj Singh Chauhan
- Mr. Manjeet Kaur Sran
- Ms. Jasbeer Kaur
- Mr. Rakesh Kumar Tomar
- Mr. Sukhdev Singh Dhillon
- Ms. Sukhjeet Kaur
Holding
SEBI directed HBN Dairies and Allied Limited and its directors to cease collecting further money from investors, to submit within 30 days a proposal with firm timelines for winding up its schemes and repaying investors with promised returns, and not to dispose of properties except for winding up and repayment purposes.
Full text
Page 2 of 4 to initiate the activities covered under the CIS and withdrew its application for registration. 3. However, SEBI vide its various letters again advised HBN to submit the desired information asked vide letter dated February 09, 2009. In reply to these, HBN vide its letter dated December 20, 2011, requested for time to furnish the information/ documents as sought for. Further, vide letter dated January 05, 2012, HBN submitted copies of the audited balance sheets for the 2009-2010 and 2010-2011. Vide another letter dated March 21, 2012, HBN submitted that it do not have any brochures/ application forms for any schemes.
Page 3 of 4 named in the SCN have ceased to be the directors of HBN and their names may be dropped from the present proceedings. b. The scheme/ plans are not in the nature of CIS. The money is provided by the customers of HBN to facilitate its business. The said amounts are not solely utilized for the purpose of purchase and rearing of cattle and maintenance of dairy farms but a part of this amount is also used for investment in acquisition of fixed assets and investment of properties through its subsidiary/ associate companies. c. The customer entering into an agreement with HBN is entitled to assured returns on the payments so made, as per the plans. d. The customer is given the option to buy the live stock from HBN. e. The property always remains with the HBN. Therefore, the condition of day to day participation of the customer does not arise.
Page 4 of 4 However, this cannot be at the risk of HBN continuing with its money collection activities/ alienation of its assets.
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Source: SecMarx — sebi:WTM/PS/15/CIS/NRO/JULY/2013. 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.