sebi:WTM/SR/CIS-SRO/114/12/2014
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Facts / Headnote
Prima facie finding that BAFIL's schemes are unregistered collective investment schemes; BAFIL and its present and past directors directed not to collect fresh money, not to launch new schemes/plans/companies, not to dispose/alienate scheme assets, not to divert funds, to submit full inventory of assets certified by statutory auditor, and to furnish auditor-certified mobilization/refund details, scheme-wise investor list with contacts, and directors' PAN; directions effective immediately until further orders.
Provisions invoked
- s. 11A
- s. 12
- s. 11
Regulations
- Reg. 3
- Reg. 4(2)(t)
Parties
- Blessing Agro Farm India Limited (CIN: U01210TN2009PLC070355)
- Mr. Innsaipillai Lurdpillai Joseph Jeyaraaj (DIN: 02430751)
- Mrs. Prakasam Sagaya Packia Santhi (DIN: 02437679)
- Mr. Irudayaraj Manickam Pillai Jeyabalan (DIN: 02439369)
- Mr. Santhanapeter (DIN: 0230812)
Holding
BAFIL's sale/purchase and development of plot/land plans (BMP A-1, A-2, A-3, A-4) prima facie satisfy all four conditions of Section 11AA(2) and are unregistered collective investment schemes in violation of Section 12(1B) and Regulation 3 of CIS Regulations, warranting interim preventive directions.
Full text
Page 2 of 17 4. Subsequently, SEBI vide letter dated October 03, 2013, sought the following additional information from BAFIL : a. Details of amount collected - investor-wise, year-wise, and scheme-wise, b. Details of amount refunded, c. Brochures/pamphlets circulated by BAFIL and d. Audited financial statements for the last three years.
Page 3 of 17 8. In response thereto, BAFIL, vide letter dated July 17, 2014, submitted the financial statements for the years 2011-12, 2012-13 and 2013-14. However, the information regarding the investors and scheme-wise mobilization were not furnished by BAFIL. Upon examination of the financial statements provided by BAFIL, SEBI vide another letter dated July 18, 2014, sought information regarding the amount of “Trade Payables” mentioned in the Balance Sheets, details of various lines of business of the company, details of money collected, sample copies of application forms, registration/allotment letter, brochures, structure and terms and conditions of schemes, details of assets owned by BAFIL, etc.
Page 4 of 17 certificate and land allotment letter issued to the customers. It was noticed that the CD provided by BAFIL which contains the details regarding the investors was received in a completely broken form. Hence, the data stated to be in the CD could not be accessed.
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Source: SecMarx — sebi:WTM/SR/CIS-SRO/114/12/2014. 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.