sebi:WTM/PS/37/IMD/ERO-RLO/MAY/2016
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Facts / Headnote
BABIL and its past and present directors jointly and severally directed to refund money collected through unauthorised public issue of Redeemable Preference Shares with interest at 15% p.a., restrained from accessing securities market for 4 years from completion of refunds, and directed to provide asset inventories and public notice of refund modalities.
Provisions invoked
- s. 11A
- s. 19
- s. 27
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 73(2)
- s. 29
- s. 291
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
- s. 56(3)
- s. 73(3)
- s. 56(4)
Regulations
- Reg. 107
Parties
- Bishal Agri-Bio Industries Limited (BABIL)
- Madhab Chandra Purkait
- Gautam Kumar Halder
- Mohd Kalimullah Baidya
- Ram Kumar Sinha
- Sushant Kumar
- Sachin Kumar Thakur
- Sankar Bhattacharjee
- Chandan Shah
- Ratan Chowdhury
- Shima Chowdhury
Holding
BABIL made a public issue of Redeemable Preference Shares to 284 persons raising Rs.3 crore during FY 2011-12 without complying with sections 56, 60 and 73 of the Companies Act, 1956, and both the company and its past and present directors are jointly and severally liable to refund the money with 15% p.a. interest.
Full text
Page 2 of 29 Date of personal hearing: November 23, 2015 (a) Mr. Kamal Das, Advocate appeared on behalf of Madhab Chandra Purkait, Gautam Kumar Halder and Mohd. Kalimullah Baidya. (b) Mr. Umesh Kumar Choubey, Advocate appeared on behalf of Ram Kumar Sinha.
Page 3 of 29 iii. The past Directors of BABIL, viz. Shri Ram Kumar Sinha (PAN: APYPS1402F; DIN: 02460975), Shri Sushant Kumar (PAN: AOVPK3954N; DIN: 06674534), Shri Sachin Kumar Thakur (PAN: AJUPT3341C; DIN: 06560350), Shri Sankar Bhattacharjee (PAN AMRPB7694J; DIN: 06584569), Shri Chandan Shah (PAN: AVNPS3170R; DIN: 02093399), Shri Ratan Chowdhury (PAN: ADIPC9989M; DIN: 00360241) and Smt. Shima Chowdhury (PAN: ADIPC9990N; DIN: 00360423), are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders; iv. BABIL and its abovementioned past and present Directors, are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions; v. BABIL shall provide a full inventory of all its assets and properties; vi. BABIL's abovementioned past and present Directors shall provide a full inventory of all their assets and properties; vii. BABIL and its abovementioned present Directors shall not dispose of any of the properties or alienate or encumber any of the assets owned/acquired by that company through the Offer of Redeemable Preference Shares, without prior permission from SEBI; viii. BABIL and its abovementioned present Directors shall not divert any funds raised from public at large through the
Page 4 of 29 i. Directing them jointly and severally to refund money collected through the offer of RPS along with interest, if any, promised to investors therein; ii. Directing them to not issue prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, for an appropriate period; iii. Directing them to refrain from accessing the securities market and prohibiting them from buying, selling or otherwise dealing in securities for an appropriate period.
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Source: SecMarx — sebi:WTM/PS/37/IMD/ERO-RLO/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.