PRESS RELEASE - SEBI

May 17, 2016
PR No. 096/2016


Order against the past directors of Sun-Plant Business Limited viz. Shri Girija Shankar Kumar and
Shri Awdhesh Kumar Singh

Shri Prashant Saran, Whole Time Member, SEBI has passed an order dated May 09, 2016 under section 19 of the Securities and Exchange Board of India Act, 1992 read with sections 11(1), 11(4), 11A and 11B thereof against Shri Shri Girija Shankar Kumar and Shri Awdhesh Kumar Singh. The Order inter-alia directs as under:
 
(a) The noticee, Mr. Girija Shankar Kumar and Mr. Awdhesh Kumar Singh shall, jointly and severally along with the Company and others as ordered vide SEBI Order dated June 03, 2015, 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 and DIP Guidelines), to the investors 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 (in terms of Section 73(2) of the Companies Act, 1956) to the investors till the date of actual payment.
 
(b) The noticees shall also provide a full inventory of their assets and properties and details of all bank accounts, demat accounts and holdings of shares/securities, if held in physical form.
 
(c) All other directions issued vide Order dated June 03, 2015 in respect of making refunds and reporting of the same shall apply mutatis mutandis to the above noticees.
 
(d) In case of failure of the noticees to refund the monies as directed in this Order or on failure to comply with the directions, SEBI, on expiry of three months from the date of this Order,-

i. shall recover such amounts in accordance with section 28A of the SEBI Act including such other provisions contained in securities laws.
 
ii. may initiate appropriate action against the noticees, including adjudication proceedings, in accordance with law.
 
iii. would make a reference to the State Government/ Local Police to register a civil/ criminal case against the noticee, for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds; and
 
iv. would also make a reference to the Ministry of Corporate Affairs for necessary action. 

(e) The noticees, Mr. Girija Shankar Kumar and Mr. Awdhesh Kumar Singh are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, directly or indirectly in whatsoever manner, with immediate effect. They are also restrained from issuing prospectus, offer document or advertisement soliciting money from the public and associating himself with any listed public company and any public company which intends to raise money from the public, or any intermediary registered with SEBI. The above directions shall come into force with immediate effect and shall continue to be in force from the date of
this Order till the expiry of 4 years from the date of completion of refunds to investors, as directed above.
 
(f) The above directions shall come into force with immediate effect.

Mumbai
May 17, 2016


 

For full copy of order against MR.GIRIJA SHANKAR KUMAR and MR.AWDHESH KUMAR SINGH click here.