TaxTMI 
TaxTMI 
TaxTMI 
2020 (3) TMI 568
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....r float any new companies/firm to raise fresh moneys; (iii) Not to dispose of any of the properties or alienate the assets obtained directly or indirectly through the money raised by VBDP; (iv) Not to divert any funds raised from public at large, kept in bank account(s) and/or in the custody of VBDP; (v) To immediately submit the full inventory of the assets obtained through money raised by VBDP; (vi) To immediately submit the full inventory of the assets owned by VBDP out of the amounts collected from the investors under its existing Scheme; (vii) To furnish all the information sought by SEBI, including - a. Copies of all the relevant documents of the company including Application Form, Agreement, Certificate issued by the Company, etc.; b. Scheme wise list of investors and their contact numbers and addresses, including - list of investors to whom land has been allotted and got registered and List of investors who have been refunded. c. Details of amount mobilized and refunded till date; d. Details of amount refunded till date along with the details of mode of payment, duly certified by a Chartered Accountant; 3. The Interim Order came to be passed against the N....
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....o them first on August 19, 2019 for which the hearing notice was served through newspaper publication and second on December 9, 2019 for which the hearing notice was served through the email address obtained from the MCA website. In view of this, I will proceed to deal with the matter on the basis of the material available on record. 7. Before proceeding to examine the matter on merits, it would be appropriate to refer to the relevant provisions which have been alleged to be violated by the Noticees. The relevant extract of these provisions are as under: Relevant extract of SEBI Act, 1992 "11AA. Collective investment scheme. (1) Any scheme or arrangement which satisfies the conditions referred to in subsection (2) or sub-section (2A) shall be a collective investment scheme: Provided that any pooling of funds under any scheme or arrangement, which is not registered with the Board or is not covered under the exemptions from CIS sub-section (3), involving a corpus amount of one hundred Crore rupees or more shall be deemed to be a collective investment scheme. (2) Any scheme or arrangement made....
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....; ** ** ** Section 12(1B): "(1B) No person shall sponsor or cause to be sponsored or carry on or caused to be carried on any venture capital funds or collective investment schemes including mutual funds, unless he obtains a certificate of registration from the Board in accordance with the regulations: Provided that any person sponsoring or causing to be sponsored, carrying or causing to be carried on any venture capital funds or collective investment schemes operating in the securities market immediately before the commencement of the Securities Laws (Amendment) Act, 1995, for which no certificate of registration was required prior to such commencement, may continue to operate till such time regulations are made under clause (d) of sub-section (2) of section 30. Explanation-For the removal of doubts, it is hereby declared that, for purposes of this section, a collective investment scheme or mutual fund shall not include any unit linked insurance policy or scrips or any such instrument or unit, by whatever name call....
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....ed therein are as under: a. The land shall be allotted in the name of Customer in case of cash down/lump sum payment after 180 days of receipt of full payment. In instalment plan, allotment in the name of Customer shall be done after 60 days from date of receipt of 60% amount as per plan opted by the Customer. In both lumpsum plan and instalment plan, the sale deed will be executed in the name of Customer after the receipt of the full consideration amount. b. If the Customer after duly subscribing to a plan of VBDP fails and refuses to submit documents, papers, photographs to complete the necessary formalities and execute the documents required for the purpose of the effective transfer and maintenance of his/her/their plots by VBDP, the same shall be constructed as a case of opting out. c. VBDP shall have the first charge on the said property on account of the unpaid installment for services/development charges for other incidental expenses incurred by VBDP. The said property cannot in any manner be sold, assigned, mortgaged, pledged or alienated without obtaining no dues certificate from the VBDP. d. The Customer has the right to retain or sell the said property to anybody....
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....valents) Rs. 1,242,618/- (cash & cash equivalents) Rs. 1,730,521/- (cash & Cash equivalents NIL NIL NIL Rs. 22,080,574/- (short term loan and other advances) Rs. 21,048,705/- (Short term loan and other advances) Rs. 21,410,905/- (Short term loan and other advances) NIL NIL NIL Rs. 80,000/- (Other current assets) Rs. 40,389,313/- Rs. 10,854/- (Other current assets) Rs. 353,82387/- Rs. 27,900/- (Other current assets) Rs. 36,249,536/- Total asset Rs. 95,000/- Rs. 85,000/- Rs. 13,372,358/- Rs. 41,221,794/- Rs. 36,242,077/- Rs. 36,754,009/- Non current liability NIL NIL NIL Rs. 40,190/- (Long term borrowing) NIL Rs. 62,259/- (Long term borrowing NIL NIL Rs. 3728/- (differed tax liability) NIL NIL NIL Current Liability NIL NIL NIL Rs. 254,760/- (Short term borrowing) Rs. 62,989/- (Short term borrowing) Rs. 239,280/- (short term Borrowing) Rs. 5000/- (Trade payable) Rs. 6000/- (Trade payable) Rs. 19,550/- (Trade payable) Rs. 397,100/- (Trade payable) Rs. 4,61,598/- (Trade payable) Rs. 1,067,942/- (Trade payables) NIL NIL Rs. 13,340,000/- (Other current liabilities) Rs. 40,208,822/- (Other current li....
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....Raipur, Chhattisgarh (0.425 H) 23,43,000/- 5,85,750/- 17,57,250/- 29-10-2014 Gram: Islampura, Dhar Madhya Prades (0.266 H) 95,00,000/- 48,50,000/- 48,50,000/-(by December 31, 2017) 25-10-2013 Gram : Bachora, Rani Mandal-02, Shivpuri Ward No. 01, Madhy Pradesh (1500 Sq. ft) 6,00,000/- 3,00,000/- 3,00,000/- 12-11-2013 Gram : Bachora, Rani Mandal-02, Shivpuri Ward No. 01, Madhy Pradesh (2000 Sq. ft) 7,75,000/- 3,75,000/- 4,00,000/- 18-10-2013 Gram : Bachora, Rani Mandal-02, Shivpuri Ward No. 01, Madhy Pradesh (2500 Sq. ft) 10,00,000/- 5,90,400/- 4,09,600/- 13. The Interim Order noted that since the company's primary activity as per its Memorandum of Association is with respect to real estate and real estate development, therefore the figures related to 'inventory' indicated acquisition of land using money mobilized from investors. The same was confirmed by looking at the land purchase details. Moreover, the bank account statement of VBDP showed that VBDP had received cash deposits from Madhya Pradesh, Chhattisgarh, New Delhi, Haryana etc. Therefore, it is understood that these would be the fund collected from the investors in cash and later deposite....
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..... The investors do not have day-to-day control over the management and operation of the scheme or arrangement. As per the terms of the conditions mentioned on the reverse side of certificate(registration letter), the land will remain in the name the company till the payment of full consideration. Only after payment of certain percentage of consideration amount, the land allotment (not the transfer of land title) will take place. Significantly there is no record of any agreement to sell and the Registration letters merely mention allotment of a value of property but not any specific bounded/identified property in the name of the investor. Also, the right of the company to discontinue/change/amend/modify or alter prospectively/retrospectively any of the rules/regulation plans and introduce new payment plan at any time at its self-discretion with or without any notice, indicates that the investors do not have day to day control over management and operation of scheme for which amount has been collected by company. Therefore, in my prima facie view, the aforesaid aspects satisfy the conditions stipulated in Section 11AA(2)(iii) & (iv) of the SEBI Act." 14. I observe that the n....
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....unds and therefore the Noticees have also violated Regulation 4 (2) (t) of the PFUTP Regulations, 2003. Directions 18. In view of the aforesaid observations and findings, I, in exercise of the powers conferred upon me under Sections 11(1), 11B, 11(4) read with Section 19 of the SEBI Act, 1992 and Regulation 65 of CIS Regulations and Regulation 11 of the PFUTP Regulations, 2003, hereby issue the following directions: a. VBDP and its Directors, viz. Yogendra Bisay and Jitendra Bisay shall wind up its existing CIS and refund the contributions or payments collected from investors under the schemes with returns due to the investors within a period of three months from the date of this order. The refund and interest payment to the investors shall be effected only through 'Bank Demand Draft' or 'Pay Order' (both of which shall be crossed as "Non-Transferable") or through internet banking channels such as NEFT or RTGS, with appropriate audit trail. b. Upon completion of the refund as directed above, within a further period of fifteen days, the Noticees shall submit a winding up and repayment report to SEBI in the format provided under regulation 73 of the CIS Regulati....