PRESS RELEASE - SEBI

February 04, 2016
PR No. 019/2016

Order in the Matter of M/s. Bharatiya Real Estate Development Limited

Shri Prashant Saran, Whole Time Member, SEBI has passed an order dated January 21, 2016 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. Bharatiya Real Estate Development Limited and its Directors viz. Mr. Soumen Majumder, Mr.Pankaj Upadhyay, Mr. Sekh Abdul Ajim, Mr. Subhas Koley, Mr. Manoj Agarwala, Mr. Tarunkumar Das and Ms.Shipra Banerjee. The Order inter-alia directs as under:

  1. The Company, Bharatiya Real Estate Development Limited, Mr. Soumen Majumder, Mr. Pankaj Upadhyay, Mr. Sekh Abdul Ajim, Mr. Subhas Koley, Mr. Manoj Agarwala, Mr. Tarunkumar Das and Ms. Shipra Banerjee jointly and severally, shall forthwith refund the money collected by the Company through the issuance of Redeemable Preference Shares (which have been found to be issued in contravention of the public issue norms stipulated under the Companies Act, 1956), to the investors including the money collected from investors, till date, pending allotment of RPS, 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 to investors shall be effected only in cash through Bank Demand Draft or Pay Order.
  3. The Company and the above directors are permitted to sell the assets of the Company only for the sole purpose of making the refunds as directed above and deposit the proceeds in an Escrow Account opened with a nationalised Bank.
  4. The Company and the above directors shall issue public notice, in all editions of two National Dailies (one English and one Hindi) and in one local daily 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, the Company and its directors shall file a certificate of such completion with SEBI, within a period of three months from the date of this Order, from 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 Bharatiya Real Estate Development Limited, Mr. Soumen Majumder, Mr. Pankaj Upadhyay, Mr. Sekh Abdul Ajim, Mr. Subhas Koley, Mr. Manoj Agarwala, Mr. Tarunkumar Das and Ms. Shipra Banerjee in complying with the aforesaid directions, SEBI, on expiry of three months 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. The Company is directed not to, directly or indirectly, access the capital market by issuing prospectus, offer document or advertisement soliciting money from the public and is 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 four (4) years from the date of completion of refunds to investors, made to the satisfaction of SEBI, as directed above.
  8. The directors of Bharatiya Real Estate Development Limited, Mr. Soumen Majumder, Mr. Pankaj Upadhyay, Mr. Sekh Abdul Ajim, Mr. Subhas Koley, Mr. Manoj Agarwala, Mr. Tarunkumar Das and Ms. Shipra Banerjee are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, with immediate effect. They are also restrained from associating themselves with any listed public company and any public company which intends to raise money from the public, with immediate effect. This restraint shall continue to be in force for a further period of four (4) years on completion of the repayments, as directed above.
  9. 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
 
February 04, 2016

 

For full copy of order against BHARATIYA REAL ESTATE DEVELOPMENT LTD., MR.SOUMEN MAJUMDER, MR.PANKAJ UPADHYAY, MR.SEKH ABDUL AJIM, MR.SUBHAS KOLEY, MR.MANOJ AGARWALA, MR.TARUNKUMAR DAS AND MS.SHIPRA BANERJEE click here.