sebi:WTM/PS/78/CIS-SRO/OCT/2015

SEBI · SEBI · 2014-12-10 · Prashant Saran, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Interim order dated December 10, 2014 confirmed with modification that directions shall not hinder execution and registration of sale deeds for existing customers; investigation ordered into the Company and Wisdom Asset Promoters India Limited; monthly reporting directed.

Provisions invoked

• s. 11A
• s. 11
• s. 19

Regulations

• Reg. 65

Parties

• Wisdom Agro Tech India Limited
• Mr. Anantharaman Nallaperumal
• Mr. Govinda Pillai Reghukumaran
• Mr. Gilbert James Dhason
• Ms. Kumaresan Vasanthakumari
• Ms. Jeyashoba Thankappan Rajam
• Mr. Prabhu Kannan

Holding

SEBI confirmed the interim order restraining Wisdom Agro Tech India Limited and its directors from collecting fresh funds and disposing of assets, modified to permit execution and registration of sale deeds for existing customers, and directed an investigation into whether the Company's activities constitute a Collective Investment Scheme.

Full text

Page 2 of 13 the assets/ acquired by Wisdom and its directors from the funds of the investing public. This Order directed Wisdom and its Directors, namely, Mr. Anantharaman Nallaperumal, Mr. Govinda Pillai Reghukumaran, Mr. Gilbert James Dhason, Ms. Kumaresan Vasanthakumari, Ms. Jeyashoba Thankappan Rajam and Mr. Prabhu Kannan (hereinafter collectively referred to as ‘noticees’): "(i). not to collect any fresh money from investors including under its existing schemes; (ii). not to launch any new schemes or plans or float any new companies to raise fresh moneys; (iii). To immediately submit the latest inventory of the assets including land obtained through money raised by Wisdom (iv). not to dispose of or alienate any of the properties/ assets obtained directly or indirectly through money raised by Wisdom. (v). not to divert any funds raised from public at large which are kept in bank account(s) and/or in the custody of the company.

Page 3 of 13 The noticees namely Ms. Kumaresan Vasanthakumari and Ms. Jeyashoba Thankappan Rajam failed to turn up for the personal hearing inspite of due intimation.

Page 4 of 13 f. The Company acquires the agricultural land from the villagers either directly in their name or by taking possession of the agricultural land after entering into agreement with the villagers for the purchase of land on paying the full amount of consideration to the sellers. Every business transaction between the Company and its customers is an independent deal for purchase of land. The Company has to transfer the land by executing sale deeds in conformity with the relevant provisions of the Transfer of Property Act, 1882 and Indian Stamp Act, 1899. The Company does not promise any assured return. g. The Company enters into an agreement to sell a specified piece of land. The piece of land is fully identified and the customer becomes absolute owner of the land on registration of the sale deed in his favour. Subsequently the said piece of land is transferred in the name of the customer by way of registered sale deed on receipt of payment of specified number of instalments. On execution of the sale deed in favour of the customer, the land ceases to be the asset of the Company and becomes the asset of the customer. The money received by the Company is towards the sale consideration of the land and the customer gets the ownership right over the said piece of land only. h. There is no pooling of money. The property or contribution is not managed by the Company, as the customers are well aware of the details of the property, they are buying. All four conditions mention

Source: SecMarx — sebi:WTM/PS/78/CIS-SRO/OCT/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.