March
31,
2015
PR No. 091/2015
Order in the matter of M/s Rhine and Raavi Credits and Holdings Limited
Shri Prashant Saran, Whole Time Member, Securities and Exchange Board of India (SEBI), has passed Order
dated March 27, 2015 in the matter of Rhine and Raavi Credits and Holdings Limited (hereinafter referred to as "the
Company") , inter-alia directing that the company Rhine and Raavi Credits and Holdings Limited, its directors,
including Mr. Rakesh Gupta, Mr. Birendra Kaji and Mr. Surendra Kumar, jointly and severally, shall forthwith refund
the money collected by the Company through the issuance of Secured Non-convertible Debentures ( herein after
referred to as "NCD'') (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 NCD, 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.
The Company/its present management is 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.
The Company shall issue public notice, in all editions of two National Dailies (one English and one Hindi) 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.
After completing the aforesaid repayments, the Company shall file a certificate of such completion with SEBI from
two independent peer reviewed Chartered Accountants who are in the panel of any public authority or public
institution.
The Company 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 4 years from the date of completion of refunds to
investors, made to the
satisfaction of SEBI, as directed above. The Company is restrained from accessing the securities market for the
purposes of raising funds with immediate effect.
The present directors Mr. Rakesh Gupta, Mr. Birendra Kaji and Mr. Surendra Kumar (the noticee who still
continues as a director in the Company as per records) 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 4 years on completion of the repayments, as directed above.
SEBI should look into the role of Mr. Gurpreetesh Singh Maini, Mr. Tridivesh Singh Maini, Ms. Jyoti Maini and
Mr. Jivtesh Singh Maini in the issuance of 'Secured Non-convertible Debentures' during July 2012 and August
2012 and proceed appropriately. Till such examination is complete, Mr. Gurpreetesh Singh Maini, Mr. Tridivesh
Singh Maini, Ms. Jyoti Maini and Mr. Jivtesh Singh Maini are prohibited from promoting any new company. They are
also restrained from mobilizing funds through the issue of equity shares or through any other form of securities, to
the public and/ or invite subscription, in any manner whatsoever, either directly or indirectly till further directions.
SEBI may initiate separate proceedings against Mr. Birendra Kaji for the contravention of SEBI (Debenture
Trustees) Regulations, 1993 and Section 117B and 117C of the Companies Act, 1956.
The Company has mobilized funds from the public against issue of Secured Non-convertible Debentures ('NCD') for
which directions were issued by way of the interim order dated October 01, 2013 alleging non-compliances with
the
public issue norms stipulated under the provisions of the Companies Act, 1956 including Sections 56, 60 and 73
thereof by the company, in respect of its issue of NCD.
Mumbai
March 31, 2015
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