sebi:WTM/PS/81/CIS-NRO/NOV/2015
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Facts / Headnote
Directions issued: restraint from collecting money/launching CIS, winding up of schemes and refund of investor monies within three months, no alienation of assets, inventory of assets/bank accounts, four-year market access ban, and referral for prosecution/recovery/winding-up proceedings.
Provisions invoked
- s. 11A
- s. 24
- s. 19
- s. 12
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
- Reg. 65(e)
Parties
- Servehit Housing and Infrastructure India Limited
- Mr. Sukhmander Singh
- Mr. Rajender Kumar
- Mr. Balbir Singh Saini
- Mr. Satish Kumar
- Mr. Surjeet Kumar
Holding
Servehit Housing and Infrastructure India Limited and its directors were found to have operated a Collective Investment Scheme without obtaining registration from SEBI, in contravention of Section 12(1B) of the SEBI Act read with Regulation 3 of the CIS Regulations, and in violation of Regulation 4(2)(t) of the PFUTP Regulations, 2003. Directions were issued requiring winding up of the schemes, refund of investor monies, a four-year restraint from the securities market, and further enforcement referrals.
Full text
Page 2 of 17 to protect the interest of investors, safeguard the assets/ property acquired by the Company by using the funds collected from the investing public and also to prevent the Company from further carrying on with its existing fund mobilizing activities through the alleged CISs. Such Order directed Servehit Housing & Infrastructure India Limited and its directors namely Mr. Sukhmander Singh, Mr. Rajender Kumar, Mr. Balbir Singh Saini, Mr. Satish Kumar and Mr. Surjeet Kumar (hereinafter collectively referred to as the ‘noticees’): “● not to collect any more money from investors under the existing schemes; ● not to launch any new schemes or plans; ● not to dispose of or alienate any of the properties or assets owned or acquired in respect of or in pursuance of the plans or schemes or earmarked/ allotted to the investors under the plans/ schemes. ● not to divert any fund raised from public at large which are kept in bank account(s) and/ or in the custody of SHIIL. ● to immediately submit the full inventory of the assets owned by SHIIL out of the amounts collected from the 'customers'/investors under its various schemes.”
Page 3 of 17 4. As no details were submitted by the Company, SEBI vide its letter dated April 09, 2014, issued a reminder to it for making the submissions. In reply, the Company vide its letter dated May 01, 2014, submitted the affidavit on behalf of the Company and the directors that they have complied with the directions issued. The Company submitted the full inventory of assets owned by it out of the amounts collected from the investors as on February 28, 2014 and the details of the persons from whom money was received/ money paid and the balance due as on February 28, 2014. The Company vide this letter also submitted that the Company is having sufficient funds i.e. ₹35.78 lakhs for meeting the liability of ₹28.93 lakhs.
Page 4 of 17 a. copy of all the balance sheets from the date of incorporation till 2014-2015. b. list of the investors along with the name, address, place where the plot was allotted. c. copies of the executed registered sale deed, if any.
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Source: SecMarx — sebi:WTM/PS/81/CIS-NRO/NOV/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.