sebi:WTM/PS/52/NRO/SEPT/2015
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Facts / Headnote
Directions issued: refund of ₹4,89,77,500 with 15% p.a. interest compounded half-yearly, prohibition on further fund mobilization, market access restrictions, asset disposal restrictions, and public notice requirements.
Provisions invoked
- s. 19
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 73(2)
- s. 465
- s. 67(1)
- s. 67(2)
- s. 67
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
- s. 56(3)
- s. 73(3)
Parties
- Life Care Infra Tech Limited
- Yogendra Pratap Shahi
- Ashok Kumar Singh
- Bhardwaj Muni Tripathi
- Ramashish Singh
- Harendra Kumar Upadhyay
- Satyendra Rai
Holding
The Company's issuance of Redeemable Preference Shares to more than 49 persons constituted a public issue under the first proviso to Section 67(3) of the Companies Act, 1956, requiring compliance with public issue norms including listing under Section 73(1), which the Company failed to do; consequently the Company and its directors are jointly and severally liable to refund all monies raised with interest.
Full text
Page 2 of 14 (hereinafter referred to as ‘RPS’) and had allegedly violated the provisions of Sections 56, 60 (read with Section 2(36)), 67, 73 of the Companies Act, 1956 read with Section 465 of the Companies Act, 2013. In order to protect the investors who have subscribed to the impugned offer and issue of RPS and to ensure that only legitimate fund raising activities are carried on by the Company and its directors, SEBI had issued the following directions: “… …
Page 3 of 14 obtained from the 'MCA 21 Portal' and complaint received by SEBI. The interim order advised the Company and its directors that they may file their replies within 21 days from the date of receipt of the order and also to seek an opportunity of personal hearing.
Page 4 of 14 May 05, 2015 submitted the reply to the interim order along with the documents as sought for by SEBI, which was taken on record. The Company had also submitted the details of the properties owned by the Company. On the date of personal hearing, advocates namely Mr. Jaspreet Singh, Mr. Vishwas Saraswat, Ms. Neha Saraswat and Mr. Jasvinder Pal Singh, appeared for Mr. Bharadwaj Muni Tripathi and other noticees and made oral submissions. The directors of the Company namely Mr. Yogendra Pratap Shahi, Mr. Ashok Kumar Singh, Mr. Ramashish Singh, Mr. Harendra Kumar Upadhyay and Mr. Satyendra Rai vide letter dated May 15, 2015, adopted the reply dated May 05, 2015, submitted by the director namely Mr. Bharadwaj Muni Tripathi. The representatives vide letter dated May 18, 2015, made brief submissions, which were taken on record.
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Source: SecMarx — sebi:WTM/PS/52/NRO/SEPT/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.