PRESS RELEASE - SEBI

July 12 2012
PR No. 068/2012


NGHI Developers India Limited, Jaipur – prohibited from collecting money from investors for
Collective Investment Schemes

Shri Rajeev Kumar Agarwal, Whole Time Member, SEBI has passed an ad-interim ex-parte order on July 09, 2012,
in the matter of NGHI Developers India Limited (NGHI) with the following directions:

  1. NGHI and its promoters and directors including Mr. Pipal Singh, Mr. Bakshish Singh and Mr. Avtar Singh shall immediately stop collecting money, directly or indirectly, from investors under the plans/ schemes offered by it
    and as identified in the Order or launch any such further plans /schemes in the nature of a 'collective investment scheme'
     
  2. The properties/assets which have been owned or acquired in respect of or in pursuance of the plans/schemes or earmarked/allotted to the investors under the plans/schemes, shall not be disposed of by NGHI without prior permission of SEBI
     
  3. NGHI, its promoters and directors including Mr. Pipal Singh, Mr. Bakshish Singh and Mr. Avtar Singh are prohibited from buying, selling or otherwise dealing in the securities and are restrained from accessing the securities
    market, directly or indirectly, or in any manner whatsoever. Further, they shall not be associated with any intermediary registered with SEBI. 
     
  4. NGHI shall deposit the money collected from the investors under its plans/schemes identified in the Order in a separate bank account within a period of 3 days from the date of the Order. A report to this effect shall be filed within 3 days of making such deposit. It shall not withdraw the money so deposited without the prior permission of the SEBI in writing in this regard.
     
  5. NGHI is restrained from replacing the certificates issued by Nicer Green Forests Limited with its bonds or any other instruments by whatsoever name called.
     
  6. NGHI shall, within 7 days of receipt of the order, provide the details/documents as required by SEBI vide letter dated September 08, 2011.

NGHI, having its registered office at F-117, 1st Floor, City Star Complex, Central Spine, Vidyadhar Nagar, Jaipur was found to be related to Nicer Green Forests Ltd. (Nicer Green) which had been held by SEBI vide its Order dated November 09, 2010 to have been operating unregistered Collective Investment Schemes. Hence, Nicer Green had been directed by SEBI vide the Order to wind up its existing collective investment scheme(s) and refund
the money collected by it under the scheme(s) with returns which were due to the investors as per the terms of offer within one month from the date of the SEBI Order. The said proceedings against Nicer green are still ongoing.
Based on a complaint it was found that NGHI is letting Nicer Green substitute the certificates issued to Nicer Green’s investors with the bonds of NGHI. It thus prima facie appears that NGHI is being used by Mr. Pipal Singh and Mr. Bakshish Singh, Directors of NGHI, as a vehicle to subvert the SEBI order against Nicer Green.
 
NGHI has also been prima facie found to be launching/floating/sponsoring 'collective investment schemes' in violation of the provisions of the SEBI Act, 1992 and the SEBI (CIS) Regulations, 1999. It is noted that agricultural lands are claimed to be sold to poor villagers/farmers who invest their hard-earned money pursuant to investment contracts that are in the nature of 'collective investment schemes' of NGHI.
 
While the aforesaid directions take effect as on the date of the order, the company and its directors may make their submissions, if any, within twenty one days from the date of receipt of this order.
 
  
Mumbai
 
July 12, 2012

For full copy of order against AVTAR SINGH, click here.

For full copy of order against BAKSHISH SINGH, click here.

For full copy of order against NGHI DEVELOPERS INDIA LTD., click here.

For full copy of order against PIPAL SINGH, click here.