sebi:WTM/PS/19/CIS/WRO/NOV/2012
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Facts / Headnote
NGHI Developers India Limited directed to wind up its schemes identified as Collective Investment Schemes and refund money collected with returns due to investors within one month; failure to comply would trigger prosecution, debarring, and references to State Government and Ministry of Corporate Affairs.
Provisions invoked
- s. 11A
- s. 24
- s. 12
Regulations
- Reg. 74
- Reg. 73
Parties
- NGHI Developers India Limited
- Pipal Singh
- Bakshish Singh
- Avtar Singh
Holding
NGHI Developers India Limited and its promoters/directors were held to be operating an unregistered Collective Investment Scheme in contravention of Section 12(1B) of the SEBI Act and Regulations 73 and 74 of the CIS Regulations, and were directed to wind up the schemes and refund investor monies within one month.
Full text
Page 2 of 15 schemes/ plans offered by it and as identified in the interim order or launch any further plans/ schemes in the nature of a CIS. The interim order also directed as under: "(b) The properties/ assets which have been owned or acquired in respect of or in pursuance of the plans/ schemes or earmarked/ allotted to the investors under the plans/ schemes, shall not be disposed of by NGHI Developers India Limited without prior permission of SEBI. (c) NGHI Developers Limited, its promoters and directors including Mr. Pipal Singh, Mr. Bakshish Singh and Mr. Avtar Singh are prohibited from buying, selling or otherwise dealing in securities and are restrained from accessing the securities market, directly or indirectly, or in any manner whatsoever. Further, they shall not be associated with any intermediary registered with SEBI. (d) NGHI Developers India Limited shall deposit the money collected from the investors under its plans/ schemes identified in this Order in a separate bank account within a period of 3 days from the date of this order. A report to this effect shall be filed within 3 days of making such deposit. It shall not withdraw the money so deposited without the prior permission of the SEBI in writing in this regard. (e) NGHI Developers India Limited is hereby restrained from replacing the certificates issued by Nicer Green Forest Limited with its bond or any other instruments by whatsoever name called. (f) NGHI Developers India Limited shall, within 7 days of r
Page 3 of 15 August 07, 2012 passed by the Hon'ble High Court of Judicature for Rajasthan at Jaipur whereby SEBI was directed to decide the matter, within a period of ten days from the date of filing of the reply by NGHI.
Page 4 of 15 transactions are genuine and the customer is under no obligation to sell the land to NGHI. Under the agreement, there is a provision that the customer will be free to sell the land at any time to any person as the customer pleases. The customers are under obligation to permit NGHI to develop the land. - Every business transaction is an independent deal for the purchase of land and the purchaser can make cash down payment or can pay the consideration in installments. Under the ‘cash down payment plan’, the land is allotted to the customers within a period, generally not exceeding 270 days from the date of receipt of the consideration while under the ‘installment payment plan’ the land is to be allotted within a period, generally not exceeding 90 days from the date of receipt of 50% of the consideration. - NGHI sells its specified asset for valuable consideration and there is no pooling as contemplated in condition (1) of the Section 11AA(2) of the SEBI Act. The piece of land is fully identified and on registration of the sale deed, the customer becomes absolute legal owner of the said land. The customer does not receive profits, income from produce or property by the transaction, but in fact he/ she purchases immovable agricultural land from NGHI. Hence, the conditions prescribed under clause (2) of the Section 11AA of the SEBI Act is also not fulfilled. Further, the agricultural land sold to the customer ceases to be the land of NGHI and therefore, under no circu
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Source: SecMarx — sebi:WTM/PS/19/CIS/WRO/NOV/2012. 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.