sebi:WTM/PS/187/CIS-NRO/MAR/2015
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Facts / Headnote
Held schemes are unregistered Collective Investment Schemes; directed abstention from further collection/launch, winding up of existing CIS and refund with returns due via Bank Demand Draft/Pay Order within three months plus winding-up/repayment report and peer-reviewed CA certificate, inventory of assets/bank/demat accounts, 4-year restraint from securities market, with extended restraint till winding-up/refund complete and threatened attachment, police/MCA references and proceedings on failure.
Provisions invoked
- s. 11A
- s. 24
- s. 19
- s. 12
- s. 11
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
Parties
- Peers Allied Corporation Limited
- Mr. Durga Prasad Dubey
- Mr. Anup Aggarwal
- Mr. Ashish Kumar Tripathi
- Ms. Indu Dubey
- Ms. Manju Upadhyay
- Mr. Alok Tripathi
- Mr. Sadhu Sharan
- Mr. Sandeep Kumar Mishra
- Mr. Ajay Kumar Pandey
- Mr. Shailesh Kumar Upadhyay
- Mr. Vishwambher Nath Dubey
Holding
Held that the installment-based and single-installment sale/development of agricultural land plans of Peers Allied Corporation Limited are Collective Investment Schemes under Section 11AA of the SEBI Act operated without registration, and directed winding-up, refund with returns, asset inventory, and restraint from the securities market.
Full text
Page 2 of 28 prima facie found that Peers is engaged in fund mobilizing activities from the public, which is in the nature of a Collective Investment Scheme (hereinafter referred to as 'CIS') as defined in Section 11AA of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘the SEBI Act’), without obtaining a certificate of registration from SEBI as required under Section 12(1B) of the SEBI Act and Regulation 3 of the SEBI (Collective Investment Schemes) Regulations, 1999 (hereinafter referred to as ‘the CIS Regulations’). The interim order was issued in order to protect the interest of investors, to ensure that the Company and its directors do not collect further funds under its schemes/ plans and to safeguard the assets/ acquired by Peers and its directors from the funds of the investing public. This Order directed Peers and its Directors, namely, Mr. Durga Prasad Dubey, Mr. Anup Aggarwal, Mr. Ashish Kumar Tripathi, Ms. Indu Dubey, Ms. Manju Upadhyay, Mr. Alok Tripathi, Mr. Sadhu Sharan, Mr. Sandeep Kumar Mishra and Mr. Ajay Kumar Pandey (hereinafter collectively referred to as ‘noticees’): “● not to collect any money from investors from its existing "scheme" or to launch any new schemes; ● to immediately submit the full inventory of the assets owned by Peers out of the amounts collected from the "Customers"/investors under its existing "Schemes"; ● not to dispose of any of the properties or alienate the assets of the existing "Schemes"; ● not t
Page 3 of 28 4. The Company vide its letter dated May 19, 2014, while submitting the new address of the registered office of the Company replied to the interim order and requested for stay of the proceedings. Later the Company vide its letter dated May 24, 2014 and August 11, 2014, requested time for filing a detailed reply to the interim order and asked for the copies of the documents relied upon by SEBI while passing of the interim order. Accordingly, SEBI, vide letter dated September 17, 2014, afforded an opportunity of inspection of documents to the noticees on September 22, 2014. The Company vide its letter dated September 20, 2014, requested for rescheduling of the date of inspection. The request of the Company was acceded to and the date was rescheduled to October 13, 2014. The Company vide its e-mail dated October 07, 2014, again requested for rescheduling of the date. The date of inspection was later fixed for October 15, 2014, when the inspection of the relied upon documents was conducted. The Company was provided with the copies of the brochure and the complaints received by SEBI.
Page 4 of 28 6. The Company vide its letter dated March 10, 2015, submitted the following: a. Copy of the layout map of land at R.N. No. 591 at Village – Sikanderpur, Pargana -Koda, Tehsil- Bindaki, Distt. Fatehpur, U.P. comprising of the total area of 2,87,737 sq. ft. b. Copy of 2 sale deeds executed by the Company in favour of its two customers namely Mr. Vinod Kumar and Mr. Sachin Kumar Gupta along with the respective application form, respective registration letter, customer ledger, respective allotment letter, letter of the Company to the customers for registration of the land and letter from the customers to the Company requesting for registration of the land. c. Copies of documents of investors who were allotted land at R.N. No. 591 at Village – Sikanderpur Pargana - Koda, Tehsil- Bindaki, Distt. Fatehpur, U.P. including the respective application form, registration letter, payment receipt, allotment letter, letter of the Company to the customers for registration of the land, reply of the customers, calculation sheet (for repurchase of developed plot) and copy of cheque of repayment amount.
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Source: SecMarx — sebi:WTM/PS/187/CIS-NRO/MAR/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.