sebi:WTM/PS/156/IMD/WRO/ILO/FEB/2016
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Facts / Headnote
Company and its three directors held to have made unlawful public issue of Cumulative Redeemable Preference Shares and directed jointly and severally to refund Rs.2,15,65,000 with 15% p.a. interest compounded half-yearly, to file inventory and refund certification, and restrained from securities market and fund mobilization with further consequential directions.
Provisions invoked
- s. 11A
- s. 19
- s. 27
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 73(2)
- s. 67(1)
- s. 67(2)
- s. 67
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
- s. 56(3)
- s. 73(3)
- s. 40
- s. 56(4)
Regulations
- Reg. 25
- Reg. 15
- Reg. 14
- Reg. 5(1)
- Reg. 6(1)
- Reg. 4(2)(a)
- Reg. 13(1)
- Reg. 8(1)
- Reg. 9(1)
- Reg. 107
- Reg. 4(5)
- Reg. 4(2)(b)
- Reg. 4(2)(c)
- Reg. 4(2)(d)
- Reg. 4(3)
- Reg. 6(6)
Parties
- Suvidha Land Developers India Limited
- Vinod Kumar Shankhwar
- Rajendra Karn Rajpoot
- Rajneesh Dutta
Holding
Suvidha Land Developers India Limited made a public issue of Redeemable Preference Shares to 1137 persons raising Rs.2,15,65,000 in 2013-14 in violation of Sections 56, 60 and 73 of the Companies Act, 1956 and the RPS Regulations, and the Company and directors Vinod Kumar Shankhwar, Rajendra Karn Rajpoot and Rajneesh Dutta were directed jointly and severally to refund with 15% interest and were restrained from the securities market.
Full text
Page 2 of 18 “6. In view of the foregoing, I, in exercise of the powers conferred upon me under Sections 11(1), 11(4), 11A and 11B of the SEBI Act and Regulation 25 of the SEBI (Issue and Listing of Non- Convertible Redeemable Preference Shares) Regulations, 2013 hereby issue the following directions –
Page 3 of 18 interest of the customer to gainfully deploy their savings in an investment which would give good returns. The Company further submitted that it never failed in paying the maturity amounts to its customers and that not even a single complaint was registered for default in payment. Its customers have full access to the Company records like project progress reports, MoA, AoA, balance sheets which are kept in its branches. The Company was in the process of preparing details of its assets and properties that would be submitted shortly. The Company represented that –
Page 4 of 18 6. On August 21, 2015, the Company, Vinod Kumar Shankhwar and Rajendra Karn Rajpoot were represented by Ms. Purnima Gupta, Advocate, who requested for further time to make
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Source: SecMarx — sebi:WTM/PS/156/IMD/WRO/ILO/FEB/2016. 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.