PRESS RELEASE - SEBI

October 28, 2014
PR No. 123/2014

Order in the matter of M/s Madurai Rural Development Benefit Fund (India) Limited and Madurai
Rural Development Transformation India Limited

Shri Prashant Saran, Whole Time Member, Securities and Exchange Board of India (SEBI), has passed an order dated October 27, 2014 in the matter of Madurai Rural Development Benefit Fund (India) Limited and Madurai Rural Development Transformation India Limited, inter-alia directing as follows :-

  1. The Companies, namely, Madurai Rural Development Benefit Fund (India) Limited and Madurai Rural Development Transformation India Limited are restrained from mobilizing funds through the issue of any securities to the public and/ or invite subscription or deposit till further directions;
  2. The Companies and their respective promoters and directors including Mr. Mohammed Yusuff Suresh Batcha, Mr. Gopalarathinam Ramarathinam, Mr. Srinivasan Srikumar, Mr. Vasudevan Balaji, Mr. Kasiviswanathan Venkataraman, Mr. Nagasubramanian Rajalakshmi, Mr. Sudhakaran Lataji, Ms. Mumtaj Begam Baba, Mr. Sithikbasha Mohamed Yusuf and Ms. Lilun Nihar Yousuff are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities till further orders;
  3. The Companies and their respective promoters and directors are directed not to dispose off any of the properties or alienate the assets of the Company or their assets. 
  4. The Companies and their respective promoters and directors are directed not to divert any funds raised from public at large through the allotment of shares.
  5. The above named Companies, and their respective promoters and directors are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions.

The companies were engaged in fund mobilizing activity through issue of equity shares to public without complying with the relevant provisions of the Companies Act, 1956, Companies Act, 2013 and the provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. It was also found that the companies are mobilizing monies from the public and are issuing equities to such persons in order to make them 'members' before 'deposit holders' and rampantly soliciting 'fixed deposits'/ 'recurring deposits' from such members, especially in Southern Districts of Tamilnadu.

 
Mumbai
 
October 28, 2014


For full copy of order against GOPALARATHINAM RAMARATHINAM, click here.

For full copy of order against KASIVISWANATHAN VENKATARAMAN, click here.

For full copy of order against LILUN NIHAR YOUSUFF, click here.

For full copy of order against MADURAI RURAL DEVELOPMENT BENEFIT FUND (INDIA) LTD., click here.

For full copy of order against MADURAI RURAL DEVELOPMENT TRANSFORMATION INDIA LTD., click here.

For full copy of order against MOHAMMED YUSUFF SURESH BATCHA, click here.

For full copy of order against MUMTAJ BEGAM BABA, click here.

For full copy of order against NAGASUBRAMANIAN RAJALAKSHMI, click here.

For full copy of order against SITHIKBASHA MOHAMED YUSUF, click here.

For full copy of order against SRINIVASAN SRIKUMAR, click here.

For full copy of order against SUDHAKARAN LATAJI, click here.

For full copy of order against VASUDEVAN BALAJI, click here.