TaxTMI 
TaxTMI 
2026 (10) TMI 647
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....t as a promoter, financial controller or decision making authority but purely in technical and functional capacity for the limited purpose of execution, supervision and commissioning of a greenfield biomass- based power project of approximately 10 MW capacity in the State of West Bengal and parts of Assam. After completion of the assigned project work, the petitioner resigned as a Director of the Company in the year 2013. Subsequent to the resignation, the Company continued its activities relating to issuance of Deep Discount Bonds and preferential shares and is alleged to have defaulted in repayment of investor funds, which ultimately led to regulatory proceedings initiated by SEBI. 3. Mr. Bhattacharya submits that the SEBI has issued a show cause notice dated 4th June, 2018, on the allegation of violations of provisions of the Companies Act and SEBI Regulations in relation to fund mobilization by Amrit Projects Limited and its Directors. The petitioner has submitted his reply to the show cause notice stating the fact that the petitioner has no role in fund mobilization, issuance of securities, or financial decision making and the role of the petitioner was only for technical a....
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....icer under the SEBI Act are in the nature of execution proceedings cannot travel beyond the scope of the underlying adjudication. In the absence of any determination of liability against the petitioner in the final order, the initiation of recovery measures including attachment and freezing of bank accounts is without jurisdiction and amounts to enforcement without adjudication. 8. Ms. Aasia Hasan, Learned Advocate, representing the respondent nos. 3 and 4/ SEBI submits that the Recovery Officer has issued the impugned order dated 21st October, 2024, in connection with the Attachment Proceeding No. 5264 and 5265 of 2019. The Whole Time Member (WTM) has passed an order dated 23rd February, 2016, directing the Amrit Projects (N.E.) Limited (hereinafter referred to as "APNEL") and its Directors, including the petitioner not to directly or indirectly, access the securities market, by issuing prospectus, offer document or advertisement soliciting money from the public and are further restrained and prohibited from buying, selling or otherwise dealing in securities market, directly or indirectly from the date of the order, till expiry of four (4) years from the date of completion of r....
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....eport, the SEBI has passed the following ex-parte interim order on 22nd August, 2014: "i. APNEL shall not mobilize funds from investors through the Offer of RPS or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions; ii. APNEL and its Directors, viz. Shri Kailash Chand Dujari (DIN: 00628742), Shri Sasanka Roy Sarkar (DIN: 03345064), Shri Barun Kumar De (DIN: 05195240), Shri Ranjan Kumar Chowdhury (DIN: 06519275) including its past Directors, viz. Shri Kali Kishore Bagchi (DIN: 00601879), Shri Nishant Prakash (DIN: 00610717), Shri Debdas Chatterjee (DIN: 05192408), Shri Syed Kazim Raza (DIN: 05172720), Shri Jamil Ahmed Farooqui (DIN: 05172708) and Shri Mahammad Azam Khan (DIN 01449067), are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders, iii. APNEL and the abovementioned past and present Directors, are restrained from accessing the securities market and....
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....rculation, detailing the modalities for refund, including details of contact persons including names, addresses and contact details, within fifteen days of this Order coming into effect e) If the Company, Amrit Projects (NE) Limited had repaid the investors as claimed by it, the Company may include such repayment in the report to be submitted under para 10.1(f), provided the Company had met with the criteria laid down under para 10.1(b) and provided further that the Company pays interest of 15% per annum compounded at half yearly intervals, from the date when the repayments became due (in terms of Section 73(2) of the Companies Act, 1956) to the investors till the date of actual payment. f) After completing the aforesaid repayments, Amrit Projects (N.E.) Limited, shall file a report of such completion of repayment with SEBI, within a period of three months from the date of this order, certified by two independent peer reviewed Chartered Accountants who are in the panel of any public authority or public institution. For the purpose of this Order, a peer reviewed Chartered Accountant shall mean a Chartered Accountant, who has been categorized so by the Institute of ....
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.... or indirectly in whatsoever manner, from the date of this Order, till the expiry of four (4) years from the date of completion of refunds to investors as directed above. The above said directors are also restrained from associating themselves with any listed public company and any public company which intends to raise money from the public, or any intermediary registered with SEBI from the date of this Order till the expiry of four (4) years from the date of completion of refunds to investors. j) The above directions shall come into force with immediate effect." 15. The petitioner has preferred an appeal against the order of the Whole Time Member dated 23rd February, 2016, being Appeal No. 142 of 2017 and the Appellate Tribunal has also dismissed the appeal preferred by the petitioner by an order dated 10th January, 2018. 16. The APNEL including the petitioner failed to comply with the order passed by the Whole Time Director which was duly affirmed by the Appellate Tribunal. The Recovery Officer has initiated recovery proceeding and issued notice of attachment under Recovery Certificate No. RC 2565 of 2019 attaching all bank accounts, demat accounts and Mutual Funds....