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November 02, 2015
PR No. 257/2015
Order in the Matter of M/s. Falkon Industries India
Limited
Shri Prashant Saran, Whole Time Member, SEBI has passed an order dated October 21, 2015 under section 19 of
the Securities and Exchange Board of India Act, 1992 read with sections 11 and 11B, inter - alia directing:
- Falkon Industries India Limited and its directors, namely, Shri Manirul Islam, Shri Indraj Singh Jat, Shri Afzal
Miah, Shri Biswajit Bhattacharya, Shri Dilwar Hossain, Shri Taslim Ansary, Shri Laxmanbhai Sitarambhai Bhoya,
Shri Manglubhai Chilyabhai Dhum and Shri Budhan Chandra Kundu, shall forthwith refund the money collected by
the Company through the issuance of RPS, including the money collected from investors, till date, pending
allotment of securities, if any, with an interest of 15% per annum compounded at half yearly intervals, from the date when the
repayments became due to the investors till the date of actual payment.
- The repayments and interest payments to investors shall be effected only through Bank Demand Draft or
Pay Order.
- Falkon Industries India Limited and its present management is permitted to sell the assets of the Company
only for the sole purpose of making the repayments including interest, as directed above and deposit the proceeds
in an Escrow Account opened with a nationalized Bank.
- Falkon Industries India Limited and its directors, namely, Shri Manirul Islam, Shri Indraj Singh Jat, Shri Afzal
Miah, Shri Biswajit Bhattacharya, Shri Dilwar Hossain, Shri Taslim Ansary, Shri Laxmanbhai Sitarambhai Bhoya,
Shri Manglubhai Chilyabhai Dhum and Shri Budhan Chandra Kundu, shall issue public notice, in all editions of two
National Dailies (one English and one Hindi) and in one local daily (in Bengali) with wide circulation, 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.
- After completing the aforesaid repayments, Falkon Industries India Limited and its directors, namely, Shri
Manirul Islam, Shri Indraj Singh Jat, Shri Afzal Miah, Shri Biswajit Bhattacharya, Shri Dilwar Hossain, Shri Taslim
Ansary, Shri Laxmanbhai Sitarambhai Bhoya, Shri Manglubhai Chilyabhai Dhum and Shri Budhan Chandra Kundu,
shall file a report of such completion of repayment with SEBI, within 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 Chartered Accountants of India
("ICAI").
- Falkon Industries India Limited and its directors, namely, Shri Manirul Islam, Shri Indraj Singh Jat, Shri Afzal
Miah, Shri Biswajit Bhattacharya, Shri Dilwar Hossain, Shri Taslim Ansary, Shri Laxmanbhai Sitarambhai Bhoya,
Shri Manglubhai Chilyabhai Dhum and Shri Budhan Chandra Kundu, are directed to provide a full inventory of all
their assets and properties and details of all their bank accounts, demat accounts and holdings of
shares/securities, if held in physical form.
- Falkon Industries India Limited shall, within 21 days from the date of receipt of this Order, provide SEBI with
all relevant and necessary information including details of debentures issued by it, as sought vide SEBI letters
dated July 9, 2013, September 30, 2013.
- In case of failure of Falkon Industries India Limited and its directors, namely, Shri Manirul Islam, Shri Indraj
Singh Jat, Shri Afzal Miah, Shri Biswajit Bhattacharya, Shri Dilwar Hossain, Shri Taslim Ansary, Shri Laxmanbhai
Sitarambhai Bhoya, Shri Manglubhai Chilyabhai Dhum and Shri Budhan Chandra Kundu, to comply with the
aforesaid directions, SEBI, on the expiry of the three months’ period from the date of this order,-
- shall recover such amounts in accordance with section 28A of the SEBI Act including such other provisions
contained in securities laws.
- may initiate appropriate action against the Company, its promoters/directors and the persons/officers who
are in default, including adjudication proceedings against them, in accordance with law.
- would make a reference to the State Government/ Local Police to register a civil/ criminal case against the
Company, 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; and
- would also make a reference to the Ministry of Corporate Affairs, to initiate the process of winding up of the
Company.
- Falkon Industries India Limited and its directors, namely, Shri Manirul Islam, Shri Indraj Singh Jat, Shri Afzal
Miah, are directed 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 the securities market, directly or indirectly in whatsoever manner, from the date of this
Order, till the expiry of 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 4 years from the date of completion of refunds to investors.
It is observed that the company was engaged in fund mobilizing activity through issue of Secured Redeemable
Debentures to more than 49 persons without complying with the provisions of the Companies Act, 1956.
Mumbai
November 02, 2015
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