sebi:WTM/PS/175/ERO/IMD/MAR/2016
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Facts / Headnote
Interim order cum show cause notice disposed of with directions for refund of money with 15% p.a. interest, market access restrictions, asset disclosure, and other compliance directions
Provisions invoked
- s. 11A
- s. 19
- s. 27
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 67
- s. 73(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
- s. 56(3)
- s. 73(3)
- s. 56(4)
Regulations
- Reg. 107
Parties
- Pious Agro Industries Limited
- Mr. Palas Chandra Dey
- Mr. Monoranjan Dey
- Smt Sunita Saha
- Mr. Chiranjib Banerjee
Holding
The Company's issue of Redeemable Preference Shares was a public issue under section 67(3) of the Companies Act, 1956, and the Company and its four directors are jointly and severally liable to refund the money collected with 15% p.a. interest, and are restrained from accessing the securities market for 4 years from completion of refunds.
Full text
Page 2 of 15 and issue of RPS and to ensure that the Company and its directors are restrained from carrying on with their fund mobilizing activity, SEBI had issued the following directions:
Page 3 of 15 viii. PAIL and its abovementioned Directors shall furnish complete and relevant information within 21 days from the date of receipt of this Order.
Page 4 of 15 (d) In the course of his employment on or about August 21, 2012, he learned that he was made as a director without his knowledge and on the basis of forged and fabricated documents. On protesting, he was told by Mr. Palas Chandra Dey (another noticee-director) that the chartered accountant of the Company had incorporated his name as a director and that the same would be rectified immediately. (e) On having serious apprehensions regarding the activities of the Company, he repeatedly requested them to remove his name as a director. However, the same was delayed on one pretext or another. (f) All of a sudden on August 23, 2012, the Company terminated his services from the Company on account of his misbehaving. At that point of time, he was made to sign in some blank A4 size white papers stating that the same were required for removing his name as a director. He was also threatened to stop payment of his salary if he does not sign. (g) Despite signing the same, he has outstanding dues as salary from the Company. (h) The noticee has no knowledge with respect to the queries. He is ready and willing to extend his co-operation to unearth the truth as to how the three directors of the Company who are at the helm of affairs of the Company enjoyed all benefits and violated the law of the land.
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Source: SecMarx — sebi:WTM/PS/175/ERO/IMD/MAR/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.