PRESS RELEASE - SEBI

May 05, 2016
PR No. 091/2016


Order in the Matter of M/s. Phenix Properties Limited

Shri Prashant Saran, Whole Time Member, SEBI has passed an order dated April 27, 2016 under section 11(1), 11(4), 11A and 11B of the Securities and Exchange Board of India Act, 1992 against the company viz. M/s. Phenix Properties Limited and its Directors viz. Mr. Ashim Das, Mr. Nirmalya Mukherjee, Mr. Abu Naseer Jamir Ahmed, Mr. Prithiish Das, Mr. Somnath Gupta, Mr. Samir Saha, Mr. Saurabh Chakraborty, Mr. Moloy Dey, Mr. Kamdev Bhattacharjee, Mr. Shekhar Saha, Mr. Badrul Islam, Mr. Debjyoti Das and Mr. Amar Kumar Das. The Order inter-alia directs as under:

  1. The Company, Phenix Properties Limited, its directors namely Mr. Ashim Das, Mr. Nirmalya Mukherjee , Mr. Abu Naseer Jamir Ahmed, Mr. Prithiish Das, Mr. Somnath Gupta, Mr. Samir Saha , Mr. Saurabh Chakraborty, Mr. Moloy Dey, Mr. Kamdev Bhattacharjee, Mr. Shekhar Saha, Mr. Badrul Islam, Mr. Debjyoti Das and Mr. Amar Kumar Das 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/ or its present management 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 its present management 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 on contact persons including names, addresses and contact details, within fifteen days of this Order coming into effect.
     
  5. If the Company, Phenix Properties Limited and/ or the directors have repaid the investors as claimed by it, the Company may include such repayment in the report to be submitted under para 23(f), provided the Company has met with the criteria laid down under para 23(b) and it pays 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.
     
  6. After completing the repayments, as directed in this Order, the Company shall submit proof regarding the repayments to two independent peer reviewed Chartered Accountants who are in the panel of any public authority or public institution, who shall verify such documents. On being satisfied that repayments have been made as per the above directions to all the investors from whom the Company had collected the money, the Chartered Accountants shall certify the same. The Company shall thereafter, file such certificate, within a period of three months from the date of this Order with SEBI. 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’).
     
  7. In case of failure of the Company, Phenix Properties Limited, its directors including Mr. Ashim Das, Mr. Nirmalya Mukherjee, Mr. Abu Naseer Jamir Ahmed, Mr. Prithiish Das, Mr. Somnath Gupta, Mr. Samir Saha, Mr. Saurabh Chakraborty, Mr. Moloy Dey, Mr. Kamdev Bhattacharjee, Mr. Shekhar Saha, Mr. Badrul Islam, Mr. Debjyoti Das and Mr. Amar Kumar Das 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 appropriate action as deemed fit.
       
    5. would also make a reference to the Ministry of Corporate Affairs to flag the names of notice directors in its database so that information may be perused by RoC or any other regulatory authority.
       
  8. The Company namely Phenix Properties Limited 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. i. The directors of the Company namely Mr. Ashim Das, Mr. Nirmalya Mukherjee, Mr. Abu Naseer Jamir Ahmed, Mr. Prithiish Das, Mr. Somnath Gupta, Mr. Samir Saha, Mr. Saurabh Chakraborty, Mr. Moloy Dey, Mr. Kamdev Bhattacharjee, Mr. Shekhar Saha, Mr. Badrul Islam, Mr. Debjyoti Das and Mr. Amar Kumar Das 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. j. For the reasons stated above in this Order, the directions imposed on Mr. Utpal Bandopadhyay, Mr. Trailukya Bora, Mr. Gopal Deka, Mr. Pulak Hazarika and Ms. Jyoti Prasad Saikia vide the interim order dated April 24, 2015, are revoked and the proceedings against these are disposed of. k. 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
May 05, 2016

 

For full copy of order against PHENIX PROPERTIES LTD., MR.ASHIM DAS, MR.NIRMALYA MUKHERJEE, MR.ABU NASEER JAMIR AHMED, MR.PRITHIISH DAS, MR.SOMNATH GUPTA, MR.SAMIR SAHA, MR.SAURABH CHAKRABORTY, MR.MOLOY DEY, MR.KAMDEV BHATTACHARJEE, MR.SHEKHAR SAHA, MR.BADRUL ISLAM, MR.DEBJYOTI DAS, MR.AMAR KUMAR DAS, MR.UTPAL BANDOPADHYAY, MR.TRAILUKYA BORA, MR.GOPAL DEKA, MR.PULAK HAZARIKA and MS.JYOTI PRASAD SAIKIA click here.