PRESS RELEASE - SEBI

May 10, 2016
PR No. 092/2016


Final Order in the matter of M/s. Garima Real Estate & Allied Limited

Shri Prashant Saran, Whole Time Member, SEBI has passed an order on May 03, 2016, wherein Garima Real Estate & Allied Limited, its promoters/ directors namely Shri. Banwari Lal Kushwah, Shri. Balkishan Kushwah, Shri. Shivram Kushwah, Shri. Banabarilal Lodhi, Shri. Bijendra Pal Singh and Shri. Jitendra Kumar inter-alia have been directed to abstain from collecting any money from the investors or launch or carry out any Collective Investment Schemes (CIS) including the schemes which have been identified as a CIS in this Order.
 
Garima Real Estate & Allied Limited, Shri Banwari Kushwah, Shri Balkrishan Kushwah, Shri Banabarilal Lodhi, Shri Shivram Kushwah, Shri Bijendra Pal Singh and Shri Jitendra Kumar shall wind up the existing Collective Investment Schemes and refund, through ‘Bank Demand Draft’ or ‘Pay Order’, the money collected by the said company under the schemes with returns which are due to its investors as per the terms of offer within a period of three months from the date of this Order and thereafter within a period of fifteen days, submit a winding up and repayment report to SEBI in accordance with the SEBI (Collective Investment Schemes) Regulations, 1999.
 
Garima Real Estate & Allied Limited/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.
 
After completing the aforesaid repayments, as directed, above, the Company shall file a certificate of such completion with SEBI, within a period of 15 days, 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’).
 
Garima Real Estate & Allied Limited, Shri Banwari Kushwah, Shri Balkrishan Kushwah, Shri Banabarilal Lodhi, Shri Shivram Kushwah, Shri Bijendra Pal Singh and Shri Jitendra Kumar are also 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.
 
Garima Real Estate & Allied Limited, Shri Banwari Kushwah, Shri Balkrishan Kushwah, Shri Banabarilal Lodhi, Shri Shivram Kushwah, Shri Bijendra Pal Singh and Shri Jitendra Kumar are restrained from accessing the securities market and are prohibited from buying, selling or otherwise dealing in securities market for a period of 4 years.
 
In the event of failure by Garima Real Estate & Allied Limited, Shri Banwari Kushwah, Shri Balkrishan Kushwah, Shri Banabarilal Lodhi, Shri Shivram Kushwah, Shri Bijendra Pal Singh and Shri Jitendra Kumar to comply with the above directions, the following actions shall follow:

  • Garima Real Estate & Allied Limited, Shri Banwari Kushwah, Shri Balkrishan Kushwah, Shri Banabarilal Lodhi, Shri Shivram Kushwah, Shri Bijendra Pal Singh and Shri Jitendra Kumar shall remain restrained from accessing the securities market and would further be prohibited from buying, selling or otherwise dealing in securities, even after the period of 4 years of restraint imposed as above, till all the Collective Investment Schemes of the Company are wound up and all the monies mobilized through such schemes are refunded to its investors with returns which are due to them.
     
  • SEBI 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;
     
  • SEBI would also make a reference to the Ministry of Corporate Affairs to initiate appropriate action as deemed fit.
     
  • SEBI would make a reference to the Ministry of Corporate Affairs to restrain above-mentioned noticee directors from being directors in other companies.
     
  • SEBI shall initiate attachment and recovery proceedings under the SEBI Act and rules and regulations framed thereunder against the Company and others responsible.

This order shall come into force with immediate effect.
 
SEBI had passed an interim order on November 24, 2014 in the matter, whereby inter-alia, it directed the company and its promoters/ directors not to collect any more money from investors through unregistered CIS activities. The present order dated May 03, 2016 brings to conclusion the above said proceedings with the aforesaid directions.

Mumbai
May 10, 2016


 

For full copy of order against GARIMA REAL ESTATE & ALLIED LTD., MR.BANWARILALKUSHWAH, MR.BALKISHANKUSHWAH, MR.SHIVRAM KUSHWAH, MR.BANABARILAL LODHI, MR.BIJENDRA PAL SINGH and MR.JITENDRA KUMAR click here.