PRESS RELEASE - SEBI

January 07, 2016
PR No. 008/2016

Order in the Matter of M/s. Sunplant Constructions Limited

Shri Prashant Saran, Whole Time Member, SEBI has passed an order dated December 31, 2015 under section 19 of the Securities and Exchange Board of India Act, 1992 read with sections 11(1), 11(4), 11A and 11B against the company viz. M/s. Sunplant Constructions Limited and its Directors viz. Shri Awdhesh Kumar Singh, Shri Satish Kumar Singh and Shri Rituraj Pradhan. The Order inter-alia directs as under:

  1. The Company, namely, Sunplant Constructions Limited and its Directors, Shri Awdhesh Kumar Singh, Shri Satish Kumar Singh and Shri Rituraj Pradhan shall forthwith refund the money collected by the Company through the issuance of RPS, including the money collected from investors, till date, pending allotment, if any, with an interest of 15% per annum compounded at half yearly intervals, from the date when the repayments became due (in terms of Section 73(2) of the Companies Act, 1956) to the investors till the date of actual payment.
     
  2. The repayments and interest payments to investors shall be effected only through Bank Demand Draft or Pay Order.
     
  3. Sunplant Constructions 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.
     
  4. The Company, namely, Sunplant Constructions Limited and its Directors, Shri Awdhesh Kumar Singh, Shri Satish Kumar Singh and Shri Rituraj Pradhan 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.
     
  5. After completing the aforesaid repayments, Sunplant Constructions Limited and its Directors, Shri Awdhesh Kumar Singh, Shri Satish Kumar Singh and Shri Rituraj Pradhan shall file a report of such completion of repayment with SEBI, within a period of 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").
     
  6. In case of failure of Sunplant Constructions Limited and its Directors, Shri Awdhesh Kumar Singh, Shri Satish Kumar Singh and Shri Rituraj Pradhan to comply with the aforesaid directions, SEBI, on the expiry of the three months period from the date of this order,-
     
    1. shall recover such amounts in accordance with section 28A of the SEBI Act including such other provisions contained in securities laws.
       
    2. 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.
       
    3. 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
       
    4. would also make a reference to the Ministry of Corporate Affairs, to initiate the process of winding up of the Company.
       
  7. Sunplant Constructions Limited and its Directors, Shri Awdhesh Kumar Singh, Shri Satish Kumar Singh and Shri Rituraj Pradhan 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.
     
  8. The above directions shall come into force with immediate effect.

It is observed that the company was engaged in fund mobilizing activity through issue of Redeemable Preference Shares to more than 49 persons without complying with the relevant provisions of the Companies Act, 1956.

Mumbai
 
January 07, 2016

 

For full copy of order against SUNPLANT CONSTRUCTIONS LTD.,MR.AWDHESH KUMAR SINGH, MR.SATISH KUMAR SINGH, MR. AND MR.RITURAJ PRADHAN click here.