Regulations
Supreme Court restrains Gujarat Police from arresting Teesta Setalvad, her husband

The apex court also directed Setalvad and her husband Javed Anand to provide Gujarat police all documents, vouchers and list of persons who gave donations to their NGOs

 

The Supreme Court on Thursday directed Gujarat Police not to arrest social activist Teesta Setalvad and her husband in a case of alleged embezzlement of funds for a museum at Ahmedabad's Gulbarg Society that was devastated in the 2002 riots.
 
"It is directed that the petitioners (Setalvad and her husband) will not be arrested in connection with the case," a bench comprising justices Dipak Misra and Adarsh Kumar Goel said, while reserving its judgement on their plea seeking anticipatory bail.
 
The apex court directed Setalvad and her husband Javed Anand to provide all documents, vouchers and list of persons who gave donations to their NGOs Sabrang Trust and Citizens for Justice and Peace for carrying out investigation in the case.
 
The bench accepted the request of their counsel Kapil Sibal that their accountant will be allowed to represent along with them before the Gujarat Police during the inquiry.
 
On the apprehension of Gujarat Police on the issue of non-cooperation of the accused during the investigation, the bench told senior advocate Mahesh Jethmalani, appearing for the Gujarat government, "If they will not cooperate with you in the investigation, you can file an application before us for cancellation of their bail."
 
The bench declined to give any commitment to Sibal whether the inquiry will be limited to post-2007 donations received by the two trusts for setting up a museum in memory of the victims or it will cover the activities of NGOs since 2002.
 

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COMMENTS

shivkumar

3 years ago

Subrata Roy enjoying all expense paid holiday at the most important jail in the country.It is we the tax payers are paying for his stay.

SEBI asks HBN Dairies not to collect money from investors
SEBI has asked HBN Dairies & Allied to submit proof including trail of funds, bank statements to support its contention that it has refunded the monies to its investors. SEBI would also initiate attachment and recovery proceedings under the SEBI Act and rules and regulations
 
Market regulator Securities and Exchange Board of India (SEBI) has barred HBN Dairies & Allied Limited and its current and former directors not to collect money from investors using its various schemes. In addition, SEBI said it would also initiate attachment and recovery proceedings under the SEBI Act and rules and regulations.
 
The directors named by SEBI are Harmender Singh Sran, Satnam Singh Randhava, Amandeep Singh Sran, Gajraj Singh Chauhan, Manjeet Kaur Sran, Jasbeer Kaur, Rakesh Kumar Tomar, Sukhdev Singh Dhillon and Sukhjeet Kaur. The company has been also asked to provide proof including trail of funds, bank statements to support its contention that it has refunded the monies to its investors.
 
SEBI had received a reference from Reserve Bank of India (RBI) along with a complaint against HBN Dairies & Allied. HBN is a company with its registered office at IIIrd Floor, Vardhman Chamber, Sonia Complex, Vikas Puri, New Delhi - 110 018). The complaint alleged that HBN is illegally mobilising funds from the public. SEBI started an investigation and wrote to HBN for detailed information. HBN instead of replying to the SEBI letter, filed an application for registration as CIS (Collective Investment Scheme) on 30 June 2010. With the application, HBN also submitted the copies of certificate of incorporation, notice to its shareholders, minutes of the Extra-ordinary General Meeting, Trust Deed and 'Rule Book'. SEBI in its letter dated 23 July 2010, sought certain documents/ details from HBN, as the information submitted was incomplete. HBN failed to provide the information within the time specified.
 
While HBN claims that it is a genuine cattle business, it has some liquidity problems which it explains as “Due to the stress to repay the investors, HBN is faced with compelling circumstances to sell the properties hurriedly giving rise to a situation to sell the properties at a price much below the expected market price. HBN had also entered into 'transaction service agreement' with JLL to sell the properties located at Bhatinda.”
 
“Subsequent to the publishing of advertisement, public notice in search of prospective buyers, a panic has been spread amongst the investors of HBN,” was the explanation from HBN management for its woes.  Over time, HBN found it difficult to attract new investors.
 
While HBN is found to operate a CIS without prior permission from SEBI, the company has a further explanation that the amounts taken from its customers are not solely utilised for the purpose of purchase and rearing of cattle and maintenance of dairy farms, but a part of this amount is also used for investment in acquisition of fixed assets and investment of properties through its subsidiary and associate companies. The same has not been referred in any of the documents viz., application, certificate, agreement, and receipt, points out SEBI in its Order.
 
The SEBI order is clear in its indictment of HBN by saying, “Section 12(1B) of the SEBI Act mandates that no person, shall sponsor or cause to be sponsored or carry on or caused to be carried on any CIS unless it obtains a certificate of registration from SEBI in accordance with the CIS Regulations. HBN has clearly failed to do so. Regulation 3 of the CIS Regulations provides that no person other than a Collective Investment Management Company which has obtained a certificate under the said regulations shall carry on or sponsor or launch a 'collective investment scheme'. A person can launch or sponsor or cause to sponsor a collective investment scheme only if it is registered with SEBI as a Collective Investment Management Company. 
 
Therefore, the launching/ floating/ sponsoring/ causing to sponsor any 'collective investment scheme' by any 'person' without obtaining the certificate of registration in terms of the provisions of the CIS Regulations is in contravention of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations. I note that HBN has launched CIS without obtaining certificate of registration from SEBI, it has contravened the provisions of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations.” Hence, HBN shall not collect any more money.
 
Coming to the refund of money already collected, “I note that HBN, in its letter dated 8 August 2013, had forwarded a repayment proposal/ schedule and a list of its properties. The said proposal/ schedule was examined by SEBI and a detailed procedure for making repayments was forwarded to HBN, in its letter dated 6 January 2014, for necessary compliance,” observes the SEBI Order.
 
Finding that there were many small investors, SEBI in its Order has highlighted the nature of complaints it received with respect to refunds: “I note that in the recent past SEBI has received more than 1,200 complaints. These complaints alleged are as under:
- HBN is not paying the matured amount. In certain cases, HBN has not repaid even after 18-24 months of the maturity date.
- Phone calls have been received by SEBI, alleging therein that the branch office of HBN has informed them that the payment of matured amount shall be made by SEBI.
- HBN has issued post-dated cheques to its investors. Certain investor complaints have also alleged that the cheques received from HBN are getting bounced.
- That the agents of HBN are asking for fresh deposits and are threatening investors of not getting their money back unless money is deposited in new scheme.
These complaints are serious in nature and have been forwarded to HBN for early resolution.”
 
There were also allegations that HBN may not be in a position to refund and fulfil its obligations. The most serious one was: “The Chartered Accountant appointed by the Delhi High Court, in his report dated 16 September 2014 had highlighted diversion of funds by HBN to its sister concern. The report also states that the net worth of HBN is in negative by Rs75.35 crore due to losses of Rs85.45 crore.”
 
Based on these difficulties in refund, SEBI has asked HBN for bank statements. SEBI has also made it clear that “HBN and its directors namely Harmender Singh Sran, Amandeep Singh Sran, Manjeet Kaur Sran and Jasbeer Kaur shall not alienate or dispose off or sell any of the assets of HBN Dairies & Allied Limited except for the purpose of making refunds to its investors.” HBN is also directed to provide a full inventory of all its assets and properties and details of all their bank accounts, demat accounts and holdings of shares/securities, if held in physical form.
 
In the event of breach of its Order, SEBI would make a reference to the State Government/ Local Police to register a civil/ criminal case against HBN Dairies & Allied, its promoters, directors and its managers/ persons in-charge of the business and its schemes, for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds, concludes the SEBI Order. SEBI shall also initiate attachment and recovery proceedings under the SEBI Act and rules and regulations.

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COMMENTS

Rajaselaran

2 years ago

Rajasekaran
TIruvannamalai
Tamilnadu
avrs1974@yahoo.com
Hello

I am one of the investor and my policy matured on end of This year June-2015 from HBN Dairy India Limited

I have not yet received my maturity amount ( more than 4 months) and not getting any valid response from the local HBN office.

Kindly suggest me how to proceed to get my money back. by way our E mail

Gopal

2 years ago

Hello,

I am one of the investor and my policy matured on end of last year Dec 2014.

I have not yet received my maturity amount ( more than 8 months) and not getting any valid response from the local HBN office.

Kindly suggest me how to proceed to get my money back.

SEBI bars ATM Agro Industries from collecting money from investors
ATM Agro illegally collected Rs1.86 crore through issuance of redeemable preference shares to 1,223 investors, says SEBI 
 
Market regulator Securities and Exchange Board of India (SEBI) has restrained ATM Agro Industries India Ltd from mobilising funds from investors. Further, the company and its directors are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities.
 
According to SEBI order, the company was engaged in fund mobilizing activity through issue of redeemable preference shares (RPS) and non-convertible debentures (NCDs) to more than 49 persons without complying with the relevant provisions of the Companies Act, 1956, read with SEBI (Issue and Listing of Debt Securities) Regulations, 2008.
 
The company and its directors are also restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, according to the SEBI Order.
 
SEBI had received a complaint dated 8 July 2014, alleging mobilisation of funds inter alia by ATM Agro. SEBI began to investigate but the company was not forthcoming with information from its side. SEBI, when it approached the auditor of the company, found that the auditor disowned the signature and seal of the audit firm and alleged forgery. SEBI was also in receipt of another complaint against ATM Agro on 5 January 2015. 
 
SEBI investigation from published and government sources revealed that the company was incorporated on 30 September 2009, with the ROC, Kolkata with CIN No. as U01400WB2009PLC138634. Its Registered Office is at Judges Court Road, Circuit House More, Medinipur, Kolkata – 721101, West Bengal, India. The present directors are Taimur Ali Gayen, Yusuf Ali Gayen and Indrajit Roy. Sachindra Nath Bhattacharya, Hasem Mirza, Ashmin Khatun, Mirza Dinar,  Nandini Chatterjee,  Debashish Dasgupta, Kamal Kishore Lodha, Debabrata Ghosh, Pradip Das,  Tahidur Rahaman Gayen, Saiful Alam and Mohammad Younus, who were earlier directors in the company, have since resigned.
 
SEBI in its Order observed, “Under the Offer of RPS, it is observed that during the financial years 2010–11 and 2011–12, ATM Agro allotted redeemable preference shares to a total of 1,223 individuals/ investors and mobilised funds amounting to approximately Rs1.86 crore. The number of investors to whom allotments were made under the Offer of Redeemable Preference Shares alongwith the amount mobilised therein, during the Financial Years 2010–11 and 2011–12 would prima facie indicate that such Offer was a public issue of securities, as prescribed under the first proviso to Section 67(3) of the Companies Act, 1956.”
 
SEBI in its Order also observed, “Under the Offer of NCDs, it is observed that during the Financial Years 2010–11 and 2011–12, ATM Agro allotted NCDs amounting to a total of Rs7.39 crore. In addition, it is also observed from the debenture certificates submitted by complainants that ATM Agro may have most likely continued to issue NCDs during the Financial Year 2012–13 too. Although details regarding the number of investors under the Offer of NCDs is not available for the aforesaid Financial Years, the quantum of funds mobilised therein coupled with the letters receivedafrom ATM Agro’s auditors, would prima facie lead to the inescapable conclusion that such Offer was a public issue of securities as prescribed under the first proviso to Section 67(3) of the Companies Act, 1956.”
 
SEBI, in its strictures on the company, pointed out, “it will follow that since the Offer of Redeemable Preference Shares and Offer of NCDs are public issues of securities, such securities shall also have to be listed on a recognised stock exchange, as mandated under Section 73 of the Companies Act, 1956. In this regard, reference is made to Sections 73 of the Companies Act, 1956, of which sub-Sections (1), (2) and (3) are relevant for the instant case.”
 
SEBI hence infers, “it prima facie appears that ATM Agro has violated the provisions of Section 73 of the Companies Act, 1956, in respect of the Offer of Redeemable Preference Shares and Offer of NCDs.”
 
The debenture reserve created is also only Rs6.18 lakh and that too only in FY2011-12.
In view of these multiple violations by the company, SEBI has barred further fund mobilising activity by the company and its directors and has denied access to the securities market. 
 
To protect the money already collected from the public, SEBI has called for shall provide a full inventory of all its assets and properties. SEBI has also directed the company and its directors that they shall not dispose of any of the properties or alienate or encumber any of the assets owned /acquired by that company through the Offer of NCDs, without prior permission from SEBI.
 
SEBI has also directed the debenture trustees to also stay away from business by saying, “The Debenture Trustees, viz. Trustees of Secured Debentures Trust of ATM Agro  (represented by its Trustees, viz. Pratima Roy and Ram Sunder Bhattacharya) and ATM Secure Debenture Trust (represented by its Trustees, viz. Amit Samanta and Jagadish Chandra Nag), are prohibited from continuing with their assignment as debenture trustee in respect of the Offer of NCDs of ATM Agro and also from taking up any new assignment or involvement in any new issue of debentures, etc. in a similar capacity, from the date of this order till further directions.”
SEBI may, on its own, initiate prosecution or other legal action over and above this Order.

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