sebi:WTM/SR/CIS/WRO-ILO/127/06/2015
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Facts / Headnote
Interim directions issued restraining the company and its directors from collecting fresh funds, launching new schemes, disposing of assets, or diverting funds; order treated as show cause notice
Provisions invoked
- s. 11A
- s. 11(4)
- s. 12
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)
- Reg. 4(2)(t)
Parties
- M/s IPN Developers & Allied Limited
- Mr. Nageshwar Panchal
- Mr. Dilip Devda
- Mr. Shankar Lal Yadav
- Mr. Harish Singh
- Mr. Rajesh Panchal
- Mr. Dashrath Singh Panwar
Holding
The schemes/plans offered by IPN Developers for 'Purchase/sale and development of land' prima facie satisfy all four conditions of a 'collective investment scheme' under Section 11AA(2) of the SEBI Act, and the company's fund mobilization without registration contravenes Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations. Interim directions were issued restraining the company and its directors from collecting further funds pending investigation.
Full text
Page 2 of 16 f) Details of the scheme wise amount mobilized by IPN Developers till date along with the number of investors under the scheme, g) Names and addresses of all investors in the scheme, h) List of all branches along with addresses, i) Certified copy of audited financial statements for the FY 2012-13, detailed trial balance for FY 2013-14, j) Copy of income tax return filed by the company for FY 2012-13, k) Details of any other similar scheme(s), if any, floated by IPN Developers or group/associate company or other companies in which Directors of IPN Developers are also Directors,
Page 3 of 16 h) Copy of the list containing the details of the said 30 investors, i) Details of their branch office with address, j) Certified copy of audited financial statements for FY 2012-13 and 2013-14, k) Copy of Income Tax return for FY 2012-13.
Page 4 of 16 The company in its letter dated June 28, 2013 stated IDAL bought tracts of land initially and continues to acquire and create a huge land bank.......then develop it and sell it in small chunks to buyers. Further, with regard to the details of scheme wise amount mobilized by the company till date (sought by SEBI letter dated May 05, 2014), the company replied that till date they have mobilized an amount of ` 3,61,700/- from 30 customers for "Scheme-I, Project A" located at Barkhedakalan. In this regard, IPN Developers was required to provide the following documents/information: i. Title deeds of the property stated to have owned by the company, ii. Whether IPN Developers is registered with local state government of Madhya Pradesh, as builder/real estate developer, for developing the aforesaid property located at Barkhedakalan, If yes, provide the copy of same, iii. The details of development activities carried out by the company from date of purchase till date.
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Source: SecMarx — sebi:WTM/SR/CIS/WRO-ILO/127/06/2015. 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.