sebi:WTM/PS/33/EFD/MAY/2016
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Facts / Headnote
Directions issued: winding up of CIS and refund of investor monies with returns within three months, restraint from securities market for four years, asset inventory disclosure, sale of assets only for refunds into escrow, certificate of completion from two independent peer-reviewed Chartered Accountants, and consequences for non-compliance including references to State Police and Ministry of Corporate Affairs.
Provisions invoked
- s. 11A
- s. 24
- s. 19
- s. 12
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
Parties
- SPNJ Land Project and Developers India Limited
- Mr. Raj Kumar Banerjee
- Ms. Dolly Banerjee
- Ms. Mausami Banerjee
Holding
The schemes/plans operated by SPNJ Land Project and Developers India Limited constitute a collective investment scheme under Section 11AA of the SEBI Act, and the Company and its directors carried on such CIS without registration in contravention of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations. Directions were issued for winding up the schemes, refunding investors, and restraining the noticees from the securities market for four years.
Full text
Page 2 of 15 2. 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 SPNJ and its directors from the funds of the investing public. This Order directed SPNJ and its directors, namely, Mr. Raj Kumar Banerjee, Ms. Dolly Banerjee and Ms. Mausami Banerjee (hereinafter collectively referred to as ‘noticees’): “a. not to collect any money from investors from its existing scheme/plan; b. not to launch any new schemes or float any new companies to raise fresh moneys; c. to immediately submit the full inventory of the assets owned by SPNJ out of the amounts collected from the "applicants"/investors under its existing scheme/plan; d. not to dispose of any of the properties or alienate the assets of the existing scheme; e. not to divert any funds raised from public at large, kept in bank account(s) and/or in the custody of the company; f. to furnish all the information with regard to scheme wise list of investors and their contact numbers and addresses along with the details of amount mobilized and refunded till date.”
Page 3 of 15 c. The interim order has been passed based on incomplete documents and non- appreciation of relevant documents/ information/ material. d. The Company deals in non-agricultural land and the number of buyers registered with the Company are much less than the land available with the Company. The agreement form specifically indicates the intention of the Company for execution of the sale deed with respect to the specific plot of the land to its registered buyer/ unit holder after receiving full and final payments/ sale consideration from the said buyer/ unit holder. e. The amount paid by the buyer/ investor/ unit holder as per payment schedule were only a part sale consideration for purchasing specific property.
Page 4 of 15 8. 204 3,000 9. 205 2,500 10. 206 2,000 Total 35,173 7. As requested, an opportunity of personal hearing was afforded to the Company and its directors on November 18, 2015 and the same was communicated to the noticees vide SEBI letter dated October 20, 2015. The representative of the Company, Mr. Sunil Kumar, Advocate vide his e-mail dated November 06, 2015 requested for rescheduling of the personal hearing. The request was acceded to and the date was rescheduled to December 14, 2015. The representative vide his e-mail dated December 09, 2015, requested for an adjournment, which was rejected. On the date fixed Mr. Sunil Kumar, Advocate appeared as authorized representative of the Company and requested time for submitting the written submissions. The request was acceded to and ten days’ time was granted for submitting the written submissions and supporting documents, if any. However, till date no written submissions have been received. Considering the reasonable opportunities already afforded to the noticees for making
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Source: SecMarx — sebi:WTM/PS/33/EFD/MAY/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.