sebi:WTM/RKA/EFD/135/2016
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Facts / Headnote
Company and its three directors found guilty of violating Companies Act, 1956 and ILDS Regulations; directed to refund subscription money with 15% p.a. interest within three months, restrained from securities market for four years or till refund, whichever is later; Mr. Mridul Bandopadhyay and Jugantor Welfare and Development Trust found guilty of unregistered debenture trusteeship and restrained from securities market for four years; proceedings against Mr. Ashok Kumar Banerjee disposed off without directions (benefit of doubt); interim order cum show cause notice dated June 23, 2015 disposed off.
Provisions invoked
- s. 19
- s. 12(1)
- s. 28A
- s. 67(3)
- s. 73(2)
- s. 291
- s. 60
- s. 56(1)
- s. 56(4)
Regulations
- Reg. 7
- Reg. 28
- Reg. 4(2)(a)
Parties
- Jugantor Realty Limited
- Mr. Sanjit Chakraborty
- Mr. Ajoy Chakraborty
- Mr. Sujay Chakraborty
- Mr. Mridul Bandopadhyay
- Mr. Ashok Kumar Banerjee
- Jugantor Welfare and Development Trust
Holding
Jugantor Realty Limited and its directors Sanjit, Ajoy and Sujay Chakraborty were held liable for making a public issue of NCDs without complying with the Companies Act, 1956 and ILDS Regulations, and directed to refund subscription money with 15% p.a. interest and restrained from the securities market for four years or till refund, whichever is later. Mr. Mridul Bandopadhyay and Jugantor Welfare and Development Trust were held guilty of acting as unregistered debenture trustees in contravention of section 12(1) of the SEBI Act and regulation 7 of the Debenture Trustee Regulations, while proceedings against Mr. Ashok Kumar Banerjee were disposed off without directions.
Full text
Order in respect of Jugantor Realty and others Page 2 of 9 (ii) “Shri Mr. Mridul Bandopadhyay, Shri Ashok Kumar Banerjee and Jugantor Welfare and Development Trust, have acted as an unregistered Debenture Trustees, which amounts to violation of the abovementioned provisions of the SEBI Act read with the Debenture Trustees Regulations”.
Order in respect of Jugantor Realty and others Page 3 of 9 4. The interim order advised the company and the aforesaid directors to show cause as to why suitable directions/prohibitions under sections 11(1), 11(4), 11A and 11B of the SEBI Act including the following, should not be taken/imposed against them: i. Directing them jointly and severally to refund money collected through the Offer of NCDs 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.
Order in respect of Jugantor Realty and others Page 4 of 9 8. I have considered the interim order, submissions of Mr. Mridul Bandopadhyay and Mr. Ashok Kumar Banerjee and material available on record. The prima facie findings made in the interim
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Source: SecMarx — sebi:WTM/RKA/EFD/135/2016. 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.