sebi:WTM/SR/CIS/SRO/HLO/19/02/2015
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Facts / Headnote
Interim directions issued restraining AGFEIPL and its Directors from collecting fresh money, launching new schemes, disposing of assets, and diverting funds; directed to furnish information to SEBI within 15 days.
Provisions invoked
- s. 11A
- s. 12
Regulations
- Reg. 3
- Reg. 4(2)(t)
Holding
AGFEIPL's schemes (Gold Line, Green Shine, Top Line, Silver Line, etc.) prima facie constitute a 'collective investment scheme' under Section 11AA of the SEBI Act, and AGFEIPL carried on such activity without registration in contravention of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations. Interim directions were issued restraining AGFEIPL and its Directors from further fund mobilization and requiring them to furnish information to SEBI.
Full text
Page 2 of 17 payment shall be done within the project period. We furnish all the information to our customers. On completion of the project, we hand over possession of the property to the owners. Thereafter, the owners, at their will, form into an association or society to manage the maintenance of the said apartment complex. ii. Development of housing plot layouts: In this segment, we purchase the lands and /or enters into joint venture with the owner of the lands, and then starts developing the housing plot layouts while taking orders from the interested persons to book/purchase the said housing plots. This is either on onetime payment basis or in instalments but all the payments are required to be paid within the project period. The development includes formation of internal roads, common facilities etc., which may vary from venture to venture. We furnish all the information to our customers. On completion of the project, we hand over possession of the property to the owners along with the layout plan. Thereafter, the owners, at their will, may form into an association to maintain the said layout or the houses that they may construct on their own. iii. Development of agricultural land projects: In this category, for sustained land management, we purchase the agricultural lands including cultivable lands which can be put into potential use by giving suitable treatment and/or enter into joint ventures with the owners of such lands, and then develop the same as cultural lands
Page 3 of 17 iii. Brochures related to AGFEIPL's projects; iv. Business Plans. 6. In addition, AGFEIPL vide the aforesaid letter also submitted "SEBI ...finally came to a
Page 4 of 17 examination at their end for possible violations of relevant provisions of law. Similarly, RBI also forwarded several complaints against AGFEIPL as the modus operandi was akin to that of a „collective investment scheme‟. It is observed that there are several investor complaints pending against AGFEIPL as on date. Further, it is seen from a search on the internet that many investors are aggrieved by non receipt of their maturity amounts/ investments from AGFEIPL.
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Source: SecMarx — sebi:WTM/SR/CIS/SRO/HLO/19/02/2015. 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.