sebi:WTM/SR/CIS-HLO/46/08/2014
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Facts / Headnote
Interim order directing VREIL and its Directors not to collect fresh money, launch new schemes, dispose of assets, or divert funds, and to furnish information to SEBI within 15 days; prima facie finding that OYPAS and LPAS plans constitute an unregistered collective investment scheme.
Provisions invoked
- s. 11A
- s. 12
Regulations
- Reg. 3
- Reg. 4(2)(t)
- Reg. 65
Parties
- Viswas Real Estate India Limited (VREIL)
- Mr. Vaka Saradhi (DIN-02696050)
- Mr. Eshararao Gundala (DIN-06773429)
Holding
The OYPAS and LPAS plans offered by VREIL prima facie fall within the ambit of a 'collective investment scheme' as defined under Section 11AA of the SEBI Act, and VREIL's fund mobilizing activity without registration is in contravention of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations. An interim order was issued restraining VREIL and its Directors from further fund mobilization pending investigation.
Full text
Page 2 of 10 Director, Mr. Eshararao Gundala received by SEBI with signature on the acknowledgement card. However, no reply has been received from Mr. Eshararao Gundala till date. As regards SEBI's letter to VREIL sent via registered post with acknowledgment due and courier returned undelivered with the remarks „addressee shifted '.
Page 3 of 10 PLAN-9 OYPAS for 1 year Monthly Installment (Rs.) Total Property Advance Paid Estimated Compensation Value (ECV) Refund Amount with ECV (after 1 year) Life Risk Coverage 500 6000 600 6600 6600 1000 12000 1200 13200 13200 1500 18000 1800 19800 19800 2000 24000 2400 26400 26400
Page 4 of 10 selection of the land, actual size and location. If there is any price variation, the difference amount is levied/ refunded as the case may be. (ii) There is no pre-closure facility available for the customers, viz., the customer can withdraw the amount only after the end of the plan period. (iii) On non-receipt of the total sale consideration, it will be treated as wilful breach of agreement/MOU/commitment as the case may be, by the prospective customer and the proposed estate/land/plot etc., will be sold /transferred to a new customer/prospective customer without any intimation to the defaulter/customer and the amount which was paid by the defaulter will be refunded by the company after 30 days from the expiry of the due date of last instalment/plan period as noted on the application after deducting the documentation charges, survey charges, other incidental/ processing charges etc. (iv) In case of death, any type of applications for refund of property advance by nominee will be processed within 30 days from the date of receipt at the corporate office and no ECV will be paid during this period. (v) The estimated compensation value (ECV) can be collected by cash/cheque from the respective branches of VREIL or to opt for fund transfer to the bank account of the purchaser. (vi) There shall be bilateral contract between the company and the customers. VREIL‟s interpretation of the terms and conditions shall be final. (vii) VREIL reserves the right to reject the appl
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Source: SecMarx — sebi:WTM/SR/CIS-HLO/46/08/2014. 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.