DIRECTIONS UNDER SECTION 11B OF THE SEBI ACT, 1992 READ WITH REGULATIONS 65 AND 73 OF SEBI (COLLECTIVE INVESTMENT SCHEMES) REGULATIONS, 1999 IN THE MATTER OF M/S GREENAGE AGROTECH LIMITED, KOLKATA.

M/s Greenage Agrotech Limited, Kolkata (hereinafter referred to as the company) filed certain information / details with SEBI regarding its collective investment schemes pursuant to SEBI’s Public Notice dated 18.12.1997.

Pursuant to the notification of SEBI (Collective Investment Schemes) Regulations, 1999 (hereinafter referred to as the said Regulations) on 15.10.1999 any person who has been operating a Collective Investment Scheme at the time of the commencement of the said Regulations was required to make an application to SEBI for the grant of registration under the provisions of the Regulations, within a period of two months from the date of notification of the Regulations.

Having regard to the interest of the investors and the requests received from various entities SEBI extended the last date of submitting application by existing entities running Collective Investment Schemes up to 31.03.2000 and the same was intimated to all concerned including the company herein by way of Press Release and Public Notice. The company, however, did not apply for registration as provided under the Regulations even within the extended period with SEBI.

In terms of Regulation 73(1) of the said Regulations, an existing Collective Investment Scheme which has failed to make an application with SEBI is required to wind up the existing scheme(s) and repay the investors. Further, in terms of Regulation 74 of the said Regulations, an existing Collective Investment Scheme which is not desirous of obtaining provisional registration from SEBI is required to formulate a scheme of repayment and make such repayment to the existing investors in the manner specified in Regulation 73 of the said Regulations.

SEBI vide its letter dated 29.12.1999 and also by way of Public Notice dated 10.12.1999 had intimated, in terms of Regulation 73(2) of the said Regulations to the company which casts an obligation on company to send an Information Memorandum (IM) detailing the state of affairs of the Scheme(s), the amount repayable to each investors and the manner in which such amount is determined. Accordingly the company, in case it was not desirous of obtaining registration, was required to send the IM to the investors latest by 28.02.2000.

The company however, neither applied for the registration nor has taken any steps for winding up of the schemes and repay the investors in the manner specified under the said Regulations. It is therefore, concluded that the company has violated the provisions of Section 12(1B) of SEBI Act, 1992 read with Regulations 5(1), 68(1), 68(2), 73 and 74 of the said Regulations. It may also be mentioned at this juncture that SEBI has also issued a public notice dated 31.03.2000 in various news papers inviting the attention of the company and other similarly situated entities about the aforesaid legal position.

As the company had failed to comply with the statutory requirements as stated above, a show cause notice dated 12.05.2000 was issued to it asking it to show cause as to why the action as stated therein be not initiated against it. The company in its reply to the show cause notice neither made an application for registration under the Regulations nor submitted the "Winding up and Repayment Report" to SEBI in the specified format.

Before taking any action pursuant to the non compliance of the statutory requirements the company was granted personal hearings on 18.12.2000, 30.08.2001 and 08.07.2002 however the company neither attended any of the personal hearings nor complied with the provisions of the said Regulations.

Pursuant to the above, vide order dated 05.08.2002 passed under Section 11B of the SEBI Act read with Regulations 65, 73 and 74 of the said Regulations the company, having failed to obtain registration and also having failed to wind up its existing collective investment scheme(s) and make repayment to its investors in accordance with the provisions of the said Regulations, was directed 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 the order or to face various actions mentioned in the aforesaid order.

The company, however, has failed to comply with the aforesaid directions also. Now, therefore, in exercise of the powers conferred under Section 11B of the SEBI Act, 1992, read with Regulation 65 of the said Regulations, I hereby debar the company / its promoters / its directors, managers / persons in charge of the business of its scheme(s) (whose names are mentioned in the Annexure) from operating in the capital market and from accessing the capital market for a period of 5 years from the date of this Order. 

Names of Promoters/Directors of Greenage Agrotech Limited:

Shri Probodh Chandra Ghosh
S/o Late Paresh Ch. Ghosh
PO: Malbazar, Bataburi Tea Estate
Dist: Jalpaiguri, North Bengal

Shri Asit Pandit
S/o N K Pandit
PO: Sodpur, Purba Palli
24 Parganas (N)

Shri Tapash Ranjan Das
S/o Chittaranjan Das
PO: Rahara, Arunachal
24 Parganas (N) – 743 186

Shri Haradhan Ghosal
PO: Panihati
24 Parganas (N) – 743 176
Shri Pranab Basu
14C, Harinath Dey Road
Kolkata – 700 009

Md. Haseen Hashmi
P-2, Tagore Park, R N Tagore Road
Kolkata – 700 005

Shri Arabinda Das
91, Gourkha Bari Road
Nager Bazar, Dum Dum
Kolkata – 700 028

Shri Manotosh Karmakar
PO: Arunadal
24 Parganas (N) – 743 186

Shri Supravat Dey
S/o Tarun Dey
148, Mitra Para Road, PO: Naihati
24 Parganas (N)

Shri Pradyut Sarkar
S/o Late Priti Ranjan Sarkar
PO: Rahara, Sarat Bose Colony
24 Parganas (N) – 743186

Shri Balai Chanda
PO: Titagarah, C/o N.J.M.C Ltd.
(KDH), 24 Parganas (N) – 743 188

Shri Pradip Bhowmick
S/o Late K N Bhowmik
Nandan Kanan, PO: Rahara
24 Parganas (N)

Shri Indra Bhusan Das
S/o Shri Bimal Chandra Ray
1/B, Arunachal
24 Parganas (N)

Shri Indra Bhushan Roy 

Managers/Persons in charge of the business:

Shri K Mitra
Administrative officer