sebi:WTM/SM/IVD/ID3/27508/2023-24

SEBI · SEBI · 2020-10-29 · S. K. Mohanty, 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

Show cause notice dated October 29, 2020 disposed of; allegations dropped with no directions or penalty

Provisions invoked

• s. 19
• s. 12A
• s. 15H

Regulations

• Reg. 4
• Reg. 3
• Reg. 5
• Reg. 3(b)

Parties

• Global Infratech & Finance Ltd.
• Mr. Pravin Tukaram Sawant
• Mr. Jagdish Chander Sharma
• Mr. Gordhan Lal Agrawal
• Mr. Sudhir Agrawal
• Ms. Anju Agarwal
• Mr. Anoop Jain
• Anoop Jain HUF
• Ms. Ritu Jain
• Ms. Indira Naresh Riyawala
• Ms. Esha Kedia
• JMD Sounds Ltd.

Holding

The show cause notice dated October 29, 2020 against Global Infratech & Finance Ltd., its executive directors, JMD Sounds Ltd. and 7 preferential allottees is disposed of as the allegation that the Company funded its own two preferential allotments through JMD Sounds Ltd. was not established.

Full text

Order in the matter of Global Infratech & Finance Ltd. Page 2 of 28 investment, leasing, bill discounting and operations of secondary market. The shares of GIFL got listed on the BSE Ltd. on February 23, 1996. Currently, the Company is suspended from trading on the BSE Ltd. while its status as per MCA portal is “Active Non-Compliant”.

Order in the matter of Global Infratech & Finance Ltd. Page 3 of 28 5.1. First Preferential allotment made on January 19, 2012 5.1.1. GIFL had received INR.15,75,75,000/- in its HDFC Bank A/c No.12842000000973 during the period from December 27, 2011 to January 4, 2012 from 49 allottees for the preferential allotment made on January 19, 2012. 5.1.2. On analyzing the bank statement of the preferential allottees, it was observed that prior to preferential allotment, INR 1,58,75,000/- was transferred by JMD Sounds Ltd. to the accounts of certain allottees of the preferential allotment i.e., Mr. Gordhan Lal Agrawal, Mr. Sudhir Agrawal, Ms. Anju Agarwal, Mr. Anoop Jain, Anoop Jain (HUF), Ms. Ritu Jain Indira and Mr. Indira Naresh Riyawala. The details are given in the table below: Table No. 1 Sl. No. Name of Allottee Shares allotted Value of shares (INR) Date of credit Amount received from JMD Sounds Ltd. (INR)

Order in the matter of Global Infratech & Finance Ltd. Page 4 of 28 allottees, INR 15,50,00,000/- was transferred by GIFL to six entities during the period January 3, 2012 to January 9, 2012 and one of the said six entities was JMD Sounds Ltd. which had received INR 3.50 crore from GIFL during the period January 4, 2012 to January 9, 2012. The period of January 4, 2012 to January 9, 2012 was the period which was prior to the date of allotment of shares to the preferential allottees, which was on January 19, 2012. 5.2. Second Preferential allotment made on June 12, 2012 5.2.1. GIFL had received INR 14,77,50,000/- during the period from June 4, 2012 to June 8, 2012 from 44 allottees for the preferential allotment to be made on June 12, 2012. 5.2.2. On analyzing the bank statement of the preferential allottees, it was observed that prior to preferential allotment, INR 30,00,000/- was transferred by JMD Sounds Ltd. to the account of one of the allottees of preferential allotment i.e., Ms. Esha Kedia on June 7, 2012. 5.2.3. From the details of preferential allotment, it was observed that Ms. Esha Kedia was allotted 2,00,000 shares of the Company for a consideration of INR 30,00,000/-. 5.2.4. It was noted at the time of investigation that out of the proceeds of the second preferential allotment amounting to INR 14,77,50,000/- received from 44 allottees, INR 14,55,00,000/- was transferred by GIFL to 11 entities during the period June 9, 2012 to June 14, 2012 and one of the said 11 e

Source: SecMarx — sebi:WTM/SM/IVD/ID3/27508/2023-24. 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.