sebi:WTM/SR/SEBI-SRO/IMD/160/09/2015
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Facts / Headnote
Interim directions issued restraining Popular Agro from collecting fresh funds, launching new schemes, disposing of assets, diverting funds; directed to submit inventory and information; order treated as show cause notice for refund, winding up and market access prohibition.
Provisions invoked
- s. 11A
- s. 11
- s. 11(4)
- s. 12
Regulations
- Reg. 65
- Reg. 3
- Reg. 5
- Reg. 4(2)
- Reg. 4(2)(t)
Parties
- M/s Popular Agro Farms Pvt. Ltd.
- Mr. Usman Pasha Usman Fayaz (Managing Director, DIN:00890257)
- Mr. Niyaz Hyder Ali (Director, DIN:00890228)
Holding
The scheme 'Popular Triple Tree Bonanza' operated by Popular Agro Farms Pvt. Ltd. prima facie satisfies all four conditions of a 'collective investment scheme' under Section 11AA(2) of the SEBI Act, and its operation without registration contravenes Section 12(1B) of the SEBI Act and Regulations 3 and 5 of the CIS Regulations. Interim directions were issued restraining the company and its directors from collecting further funds and disposing of assets pending final decision.
Full text
Page 2 of 11 2.1 SEBI also sent separate letters to the Directors of the company seeking the aforesaid information/documents. The said letters were, however returned with the remarks "Left" / "No such Addressee".
Page 3 of 11 iii. As per the Memorandum of Association, the main object of the company is to carry on the business of agricultural, horticultural, floricultural and agricultural activity by purchase, lease, grant, licence lands and cultivate, grow or deal in any plantation, agricultural crops, manage and sell them.
Page 4 of 11 • "The applicant shall make one-time payment of Rs. 1000 per teak tree along with the application form duly filed in. Out of this Rs. 1000/, Rs. 500/- shall be towards long term maintenance cost, Rs. 400/- towards plantation developments, marketing, recurring and non-recurring maintenance expenses. And Rs. 75 towards companies charges and Rs. 25 towards the cost of saplings. • Within 10 days from the receipt of issue of Application Money. The company shall post to the investor a certificate entitling the ownership of tree)s) as per option indicated. • A teak tree managed by Popular Agro Farms Pvt. Ltd. at the end of 20 years is likely to yield 37 cubic feet of teak timber. Taking into account the current market price based on 6% inflation, each teak tree at the end of 20 years may fetch Rs.70,000/- as sale proceeds. Hence the investor at the end of the 20th year has the option for either a tree duly cut or as sale proceeds of the tree. Under both these options the company shall cut the tree from 6 inches above the ground and deliver the same to the member either as tree or as sale proceeds of the tree subject to the deduction of statutory levies a smay be applicable then. • At any point of time from the date of allotment if any member wishes to opt out of the scheme the member would get back the initial payment without interest from M/s Popular Agro Farms Pvt. Ltd. and this would cancel the membership and the benefits that go along with such membership. • The com
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Source: SecMarx — sebi:WTM/SR/SEBI-SRO/IMD/160/09/2015. 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.