TaxTMI 
TaxTMI 
2011 (5) TMI 847
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....iling of the present petition are that M/s Master Green Forests Ltd. was incorporated on 3-6-1992 with three Directors Dayaram Verma, Santosh Verma and Amrit Lal Verma. Memorandum of Association was submitted to the Registrar of Companies Act, Punjab having its office at Jalandhar City. Thereafter, on 15-12-2003 SEBI filed a complaint under section 200 Cr.P.C. against the Company, Petitioners and the three other Directors of the Company. In the said complaint it is alleged that the said Company operated Collective Investment Schemes and raised huge amount from general public without complying with rules and regulations issued by SEBI in regard to the Collective Investment Schemes. Pursuant to the press release dated 26-11-1997 and a public ....
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....used Company and its promoters, Directors in-charge responsible for the conduct of its business are liable under section 27 of SEBI Act, 1992. 3. Learned counsel for the Petitioners contends that the Petitioners herein are not the Directors, promoters or in-charge of the accused Company. They are only the shareholders and have no role to play in the day to day working of the Company. Their names appear in the Memorandum in the capacity of shareholders and not under the head of Directors, promoters or persons in-charge of the Company. It is also stated that there is no specific allegation qua the Petitioners in the complaint dated 15-12-2003. In the year 2009 an application being Crl.M.C. 1367/2007 was filed by one of the shareholders Sanje....
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....ondent SEBI regarding its CIS. The accused company was then required to follow the provisions under Chapter IX of the Regulations which required any person who had been operating a CIS at the time of commencement of the said Regulations to be an existing CIS. Also any person who immediately prior to commencement of the Regulations operating such scheme was required to make an application to the SEBI for grant of registration within a period of 2 months, from the date of notification of the said Regulations. As per the Regulation 73(1) if a company failed to make an application for the registration, it ought to have wound up the existing CIS and repay the amount to the investors. Despite repeated directions and reminders sent by the SEBI, to....