sebi:WTM/SR/CIS-NRO/110/12/2014
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Facts / Headnote
Interim directions issued restraining KREL and its Directors from collecting fresh money, launching new schemes, disposing of assets, and diverting funds; reply and personal hearing opportunity granted within 21 days
Provisions invoked
- s. 11A
- s. 12
- s. 143
Regulations
- Reg. 3
- Reg. 4(2)
Parties
- Kalpbut Real Estate Limited
- Mr. Bhanu Pratap Singh
- Mr. Krishan Pal Singh
- Mrs. Guddi Devi
- Mr. Rajendra Singh Thakur
- Mr. Parvesh Kumar Singh
- Mr. Natthu Singh
- Mr. Raksha Pal Singh
- Mr. Devendra Pal Singh
- Mrs. Rajeshwari Sengar
- Mr. Pooran Prakash
Holding
KREL's schemes for sale and development of plots of land satisfy all four conditions of a 'collective investment scheme' under Section 11AA(2) of the SEBI Act, and KREL's fund mobilization without SEBI registration is in contravention of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations. Interim directions were issued against KREL and its Directors to prevent further fund mobilization and safeguard assets pending final decision.
Full text
Page 2 of 14 viii. Copies of audited financial statements and Income Tax Returns filed by KREL. for the last three financial years.
Page 3 of 14 8. Subsequently, vide its letter dated June 06, 2014 KREL submitted that “it is running a genuine Real Estate Development company where the allotment is being made to the person whomsoever is interested in buying the property from the KREL. It was also informed vide the said letter that once the interested person pays the money, KREL immediately allot the property as per availability and preference and necessary registration letter is also given with necessary details like plot number, khasra number etc. to identify the property.” A copy of Registration letter issued to an investor who invested ` 50,000/- in KREL's 'Single Instalment Plan' for 50 sq.yards plot at Sisarka, Distt. Badaun, U.P was also enclosed in the said letter. (However, it is noted that details of plot, khasra number etc. were not mentioned in the aforementioned 'Registration letter'.)
Page 4 of 14 iv. Total number of persons to whom such flats in the said scheme have been allotted and details thereof including their PAN, v. Photographs showing the actual ongoing stage of construction of the above stated residential project, vi. Details of land along with specification in terms of size, price and location."
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Source: SecMarx — sebi:WTM/SR/CIS-NRO/110/12/2014. 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.