SEBI directs Agri Gold Farm Estates not to collect money from investors
Agri Gold Farm Estates India was found engaged in mobilising funds from the investors under its schemes, violating the provisions of the SEBI Act and SEBI (Collective Investment Scheme) Regulations, 1999, according to a SEBI Order
 
Market regulator Securities and Exchange Board of India (SEBI) has directed Agri Gold Farm Estates India Pvt Ltd and its six directors not to collect money illegally from investors or launch any new collective investment scheme (CIS) to garner funds.
 
SEBI said, Agri Gold Farm Estates and its directors, Venkata Rama Rao Avva,  Avva Venkata Seshu Narayana Rao, Avva Hema Sundara Vara Prasad, Savadam Srinivas, Moganti Bhanuji Rao and Emmadi Sada Siva Vara Prasad Rao, will wind up all existing CIS, where investors have given money. They are also barred from approaching or involving themselves in any manner with the securities market for a period of four years.
 
The company and its directors are required to desist from disposing of their assets and to account for all their assets to SEBI.
 
Agri Gold Farm Estates was found engaged in mobilising funds from the investors under its schemes, violating the provisions of the SEBI Act and SEBI (Collective Investment Scheme) Regulations, 1999, according to the SEBI Order.
 

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SEBI asks PACL to pay Rs7,269 crore fine for illegal money collection
PACL, formerly Pearls Agrotech Corp is asked to pay Rs7269 crore as penalty for illegal and fraudulent mobilisation of funds from investors
 
Market regulator Securities and Exchange Board of India (SEBI) has asked Delhi-based PACL Ltd (formerly Pearls Agrotech Corp) and its four directors to pay Rs7,269.5 crore as penalty for illegal and fraudulent mobilisation of funds from the public. SEBI said the company deserves "maximum penalty" for such large-scale duping of the common man.
 
"In the recent past, the country has suffered a lot in the hands of entities who indulge in such illegal money mobilisation under various schemes, wherein hard earned money of the common man has been duped. Thus, imposition of deterrent penalty is the need of the hour," SEBI said in its order.
 
In August this year, the Securities Appellate Tribunal (SAT) had upheld SEBI’s order of last year that had asked PACL to refund money to investors in a land-purchase scheme operated like a mutual fund. According to SEBI, PACL has 58.5 million customers.
 
Last year in August, the market regulator, while barring the company and its promoters and directors from raising money had asked them to refund within three months Rs49,100 to investors. In pure rupee terms, the amount PACL is asked to refund is more than double of what Sahara group has been asked to return to investors by the Supreme Court. 
 
SEBI said that its probe revealed that PACL and its four directors – Tarlochan Singh, Sukhdev Singh, Gurmeet Singh and Subrata Bhattacharya – had mobilised funds from the public through illicit collective investment schemes including in the name of purchase and development of agriculture land.
 
SEBI said that PACL made huge illegal mobilisation of money, leading to consequent profit to the tune of over Rs2,423 crore in a short span of less than one year. In a strong-worded order, SEBI said, "Keeping in view the entire facts and circumstances of the case... there cannot be a better case than this which deserves the maximum penalty".
 
Under SEBI norms, it can impose a penalty of Rs25 crore or three times of the profit made by indulging in fraudulent and unfair trade practices and in the present case the regulator has imposed a fine equivalent to three times of the illicit gains.
 

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COMMENTS

integrity

1 year ago

Yet sahara cries foul and moan about SEBI's foul intent and malice. They even once said that they did not justice from the SC

integrity

1 year ago

Still Sahara cries foul and speaks of malicious intent on part of SEBI and even once said that they did not get "justice " from SC

UIDAI locks horns with activist for 'misinterpreting' RTI reply
The UIDAI - entrusted with the onerous task of preparing Aadhaar cards for all Indians - has locked horns with an RTI activist, accusing him of "misinterpreting" replies to Right to Information queries.
 
In a statement here on Wednesday, the UIDAI has refused contentions made by Mumbai-based RTI activist Anil Galgali - based on a UIDAI's reply - that it had awarded Aadhaar card project works worth Rs.13,663 crore without soliciting tenders.
 
"We categorically state that this is a false statement made with malafide intentions," H.L. Verma, UIDAI’s deputy director (media), said of the report carried by IANS and other media on September 20.
 
The skewed presentation of information received under RTI without context and proper understanding of the facts is an attempt to tarnish the clean image of UIDAI, he added.
 
Verma explained that the total approved outlay for the UIDAI project is Rs.13,663.22 crore and it pays to the state government, public sector banks and public institutions only Rs.40 for each Aadhaar card for enrolment done by their agencies.
 
“UIDAI only does the empanelment of the enrolment agencies... the question of issuing any tender by UIDAI does not arise... It is the registrars who enter into contracts with the enrolments agencies...," Verma pointed out.
 
To this, Galgali said: “In reply to my RTI query, the UIDAI’s Public Information Officer categorically stated that there is ‘no tendering process’. He did not clearly state this or mention that the works are carried out by various state governments and other agencies."
 
Referring to UIDAI’s contention that the registrars were required to do open tendering for engaging enrolment agencies from those agencies who are already empanneled by it, Galgali said it was the UIDAI’s duty to explain this process or it should have been forwarded to concerned registrars for their response, as per Section 6(3) of the RTI Act, 2005.
 
The UIDAI also termed as "miscomprehension and malafide" allegations that 25 companies were given contracts without tendering and said its website lists all contracts awarded with tender documents, following the prescribed government norms.
 
Galgali pointed out that the miscomprehension arose due to the vague nature of replies to simple, direct RTI queries submitted by him, and the fact that no tenders were issued for such huge Aadhaar card works remains hazy.
 
“On its website, under the title ‘Contracts Awarded’ implies that these are contracts and not empanelment. The query sought details about contractors, but the reply on its link shows Contracts Awarded. This portrays incompetence of the UIDAI’s PIO to respond correctly to RTI queries,” Galgali said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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