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CO/17/CIS/04/2003
SECURITIES AND EXCHANGE BOARD OF INDIA
ORDER
UNDER SECTION 11B OF THE SEBI ACT 1992 READ WITH REGULATION 65 OF THE SEBI (COLLECTIVE INVESTMENT SCHEMES) REGULATIONS, 1999, IN THE MATTER OF
M/S. KALPTARU AGRO INDIA LTD., MATHURA, U.P.
M/s. Kalptaru Agro India Ltd., Mathura, UP (hereinafter referred to as the company) was required to comply with the statutory requirements of the SEBI (Collective Investment Schemes) Regulations, 1999 (hereinafter referred to as the Regulations) of winding up their schemes, repaying the investors and filing the winding up and repayment report, signed by all directors of the company and audited by statutory auditors. On account of the failure to do so, vide a SEBI order dated February 10, 2003 (copy of which is enclosed as Annexure I), the company was directed under Section 11B of the SEBI Act, 1992 (hereinafter referred to as the Act) read with Regulation 65 of the Regulations, to refund the money collected under the scheme(s) alongwith returns which were due to investors as per the terms of the offer within a period of one month from the date of the said order. The copy of the aforesaid order was sent by speed post to the company vide letter dated February 14, 2003. However, the company has failed to comply with the directions of the aforesaid order or even report compliance of the aforesaid order. Thus, it has violated the provisions of Regulation 73 of the Regulations.
In view of the same, in exercise of powers conferred under Section 11B of the Act, read with Regulation 65 of the Regulations, without prejudice to the right of SEBI to take any other action as it may deem fit, I hereby debar the company/its promoters/its directors/its managers/persons in charge of the business of its schemes, including names as contained in Annexure II from, in any capacity whatsoever, associating with the capital market related activities, dealing in securities, accessing the capital market, associating with any of the intermediaries in the capital market and operating in the capital market for a period of 5 years from the date of this Order.
Any aggrieved person, whose name is mentioned in the enclosed Annexure II, but was not aware of the previous order and the warning issued vide the said Order and was not responsible for the conduct of the business of the company, may apply in writing, within 15 days, from the date of this Order, with all the supporting documents to SEBI.
Place: MUMBAI G.N. BAJPAI
Date: 10th April, 2003 CHAIRMAN
SECURITIES AND EXCHANGE BOARD OF INDIA
Annexure I
CO/478/CIS/02/2003
SECURITIES & EXCHANGE BOARD OF INDIA
DIRECTIONS UNDER SECTION 11B OF THE SEBI ACT 1992 READ WITH REGULATIONS 65 & 73 OF SEBI (COLLECTIVE INVESTMENT SCHEMES) – REGULATIONS, 1999 ISSUED AGAINST
M/S KALPTARU AGRO INDIA LTD., MATHURA
M/s Kalptaru Agro India Ltd. (hereinafter referred to as the company) had filed information / details with SEBI regarding its Collective Investment Schemes (CIS) pursuant to the public notice dated 18.12.97 issued by SEBI.
Subsequent to the notification of SEBI (Collective Investment Schemes) – Regulations, 1999 (hereinafter referred to as the Regulations) on October 15, 1999, the company applied for registration under the provisions of the Regulations. The application and other details available on record were examined by SEBI. Various opportunities of being heard were also granted to the company. In the course of the said hearings, it emerged that the company had continued to mobilize funds in contravention of SEBI directions dated 24.2.98 & the Order of the Hon’ble High Court of Delhi dated 7.10.98 / 13.10.98 passed in the CWP 3352/98. The said action of the company resulted in the violation of Regulation 69 of the Regulations. Hence, the company was advised to immediately repay the amounts of money mobilized in contravention of the above-mentioned directions and Orders. The company filed an estimated repayment schedule spanning seven years till 2008-2009 with SEBI with respect to these funds. The same was not found to be acceptable by SEBI. Further, the company did not fulfil certain requirements of the Regulations for grant of registration. Therefore, its application was rejected by SEBI on 29.6.2002.
While intimating the grounds of rejection of its application, SEBI vide its letter dated 5.7.2002, advised the company that pursuant to the rejection of its application, the company, as an existing Collective Investment Scheme, was required to wind up its existing scheme(s) and make repayment to the investors in terms of Regulation 73 of the Regulations.
Accordingly, the company was required to send an information memorandum to the investors, who had subscribed to its scheme(s), within two months from the date of receipt of the intimation from SEBI. Further, on completion of the winding up and repayment to the investors in terms of Regulation 73, the company was required to file a "Winding Up & Repayment Report" in the format prescribed by SEBI so as to reach SEBI within 3 & ½ months of the date of the information memorandum.
However, the company has failed to comply with the aforesaid requirement. Therefore, it has prima facie violated the provisions of Section 12(1B) of the SEBI Act, 1992 and the provisions of Regulation 73 of the Regulations.
Now, therefore, in exercise of the powers conferred upon me under section 11B of the SEBI Act, 1992, read with Regulation 65 of the Regulations, I hereby direct the company to refund the money collected under the scheme(s) with returns which is due to the investors as per the terms of the offer within a period of one month from the date of this order, failing which the following actions would follow :
1. Initiation of prosecution proceedings under Section 24 of the SEBI Act, 1992 against the company / its promoters / its directors / its managers / persons in charge of the business of its scheme(s).
2. The company / its promoters / its directors / its managers / persons in charge of the business of its scheme(s) would be debarred from operating in the capital market and from accessing the capital market for a period of 5 years.
3. Writing to the state governments / local police to register civil / criminal cases against the company for apparent offences of fraud, cheating, criminal breach of trust and misappropriation of public funds.
4. Writing to the Department of Company Affairs to initiate the process of winding up of the company.
Place : Mumbai G.N. Bajpai
Date : February 10, 2003 Chairman
Securities and Exchange Board of India
Annexure II
Directors:
Shri Jai Krishna Singh Rana Also Promoter
S/o Sh. Daulat Singh Sisodia
L.A.Q. 1, Veterinary College
Mathura (UP)
Mrs. Beena Singh Also Promoter
W/o Uttam Singh
Vil- Jajuka, Post- Ujhina
Distt. Gurgaon (Haryana)
Sh. Ajay Kr. Sharma Also Promoter
S/o Sh Raj Kumar Sharma
Vill. Lamtauri
P O Surir, Dist. Mathura
Smt. Kavita Gautam Also Promoter
W/o Sh Vinod Kumar Gautam
24 B Sector 9, Vijay Nagar
Gaziabad
Sh. Raj Kr. Luthra Also Promoter
S/o Sh. Mangal Das Luthra
H 5/72, Sector 16, Rohini
Delhi
Shri Bhanu Pratap Singh Also Promoter
S/o Sh. Rajvir Singh
Vill. & Post Jamuna
Distt. Aligarh (UP)
Mrs. Mithilesh Singh Also Promoter
W/o Sh. J K Singh Rana
L.A.Q. 1, Veterinary College
Mathura (UP)
Mrs. Meena Sharma
W/o Sh. Indra Kumar Sharma
Prakash Kunj, Mohalla Gandhi Nagar
Aligarh (UP)
Shri Ramesh Chandra Sharma
s/o Lalita Prasad Sharma
Vill. & Post- Mahmadpur, Parasoli
Mathura (UP)
Shri B M Singh
s/o Sh Raj Kumar Pal
Brahm Nagar Dayalpur Road
Auriya (UP)
Shri M. M. Rane Executive Director
Key Management Personnel & Managers
Sh Bhikam Singh
Sh. Navneet Kulshreshtha
Sh. Deepak Kumar
Sh. Pradeep Garg
Sh. S P Singh
Sh A K Ahuja
Sh. Anil Ahuja
Sh. D.P. Singh
Sh. Rajesh Verma
Sh. Raj Kr. Sharma
Sh. K N Pandry
Sh. Raj Kishore Rajput
Sh. Sanjay Sharma
Sh. S I Khatib
Sh. G N Walavalekey
Sh. Mangesh Sawant
Sh. Vishal Rana
Sh. Bhaskar Sawant
Sh. Prabhu
Sh. K B Thapa
Sh. V P Sharma
Sh. Lalit Kr. Mishra
Sh. Sukhdev Singh
Sh. Anand Pal Singh
Sh. Sant Ram Sharma