sebi:WTM/SR/ERO-CIS/15/07/2013
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Facts / Headnote
Interim directions issued restraining SPPL from collecting further funds, launching new schemes, disposing of assets, or diverting funds; order treated as show cause notice
Provisions invoked
- s. 11A
- s. 12
- s. 11
Regulations
- Reg. 65
- Reg. 3
Parties
- Sai Prasad Properties Ltd (SPPL)
- Shri Balasaheb K Bhapkar
- Mrs. Vandana B Bhapkar
Holding
The schemes offered by SPPL under the nomenclature 'joint venture' prima facie constitute a collective investment scheme (CIS) under Section 11AA of the SEBI Act, carried out without registration in violation of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations. Interim directions were issued restraining SPPL and its directors from further fund mobilization pending final adjudication.
Full text
Page 2 of 15 iii. Brochures pertaining to schemes/ offers which were made available to the public. iv. Copies of application forms that were required to be submitted by investors/applicant to participate in schemes offered by SPPL. v. Sample copies of the registration letter and allotment letter issued to the investors who subscribed to schemes offered by SPPL. vi. Sample copies of the agreement letter/contract required to be entered into by investor/applicant under schemes offered by SPPL. vii. Details of the scheme wise amount mobilized by SPPL till date along with the number of investors under the schemes offered by SPPL. viii. Certified copy of audited financial statement for the FY 2009-10, 2010-11, and 2011-12. ix. Copy of Income Tax Return filed by SPPL for the last three years. x. Details of the regulatory approvals obtained by SPPL, if any, for provision of accidental death/disability benefits to investor, under schemes offered by SPPL. xi. Details of any other similar scheme(s), if any, floated by SPPL or its group/associate companies.
Page 3 of 15 with number of investors , sample copies of the registration letter and allotment letter, agreement form, brochure, details of any other similar scheme(s), if any, floated by SPPL or its group/associate companies etc., as sought by SEBI, were not furnished by SPPL. SPPL also stated that they do not have any schemes and they are carrying out "joint venture participation projects". Further, it was also submitted by SPPL that "expected refund of joint venture participation would be initiated from 01, September 2013, as per the joint venture agreement of SPPL with respect to the co-ventures".
Page 4 of 15 the company has to execute the sale deed only if it fails to refund the agreed amount to the customers at the end of the agreement period. This clearly indicates that the company is only into accepting deposits and not into the sale of land. This indicates that both the company (SPPL & Sai Prasad Foods Ltd –a group company of SPPL) are simply collecting deposits from the investors without any registration with RBI.
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Source: SecMarx — sebi:WTM/SR/ERO-CIS/15/07/2013. 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.