July 07, 2015
PR No. 179/2015
Order in the matter of Shah Group Builders Limited
Shri Rajeev Kumar Agarwal, Whole Time Member, SEBI has passed an order dated July 01, 2015 issuing the
following directions :-
- The Noticees i.e. Shah Group Builders Limited and its promoters / directors namely, Mr. Nalin
V. Shah, Ms. Neelam N. Shah and Mr. Nirav N. Shah shall, jointly and severally, refund/repay the money to
the tune of ?6,15,88,300/- collected pursuant to the allotment of shares by Shah Group Builders Limited
during the period July 28, 2008 to November 15, 2008, to the allottees along with interest at the rate of 15%
per annum from the date of receipt of money from them till the date of such refund, within a period of one
year from the date of this order. However, the Noticees shall ensure that not less than 25% of the
refund/repayment directed above is made to the allottees in every quarter starting from the date of this order.
A quarterly report shall be submitted by the Noticees in this regard at the end of each quarter.
- Such refund shall be made only in cash through a Demand Draft or Pay Order.
- The Noticees shall produce documentary evidence certified by a Chartered Accountant to show the
refund/repayment of ?3,59,11,700/- as claimed by them within a period of one month failing which, the direction
given in paragraph 19(i) above shall follow with respect to this amount also.
- The Noticees shall maintain stock-in-trade of a minimum of ?15 crore on a continuous basis till the full
refund/repayment as directed hereinabove is made.
- The Noticees shall issue a public notice, in all editions of one English national daily and one vernacular
daily with wide circulation, detailing the modalities for refund, including details of contact persons including names,
addresses and contact details, within fifteen days of this order.
- Within seven days of completion of refund as directed hereinabove, the Noticees 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. Such certificate shall be issued by the Chartered Accountants after verifying
the relevant documents including bank accounts of the Noticees and satisfying themselves that the refund
has actually been made. 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.
- The Noticees are restrained from, directly or indirectly, accessing the capital market by issuing
prospectus, any offer document or advertisement soliciting money from the public and are further prohibited from
buying, selling or otherwise dealing in the securities market, directly or indirectly, in whatsoever manner for a period
of 18 months or till the date of refund of money to the allottees whichever is later.
- Mr. Nalin Virji Shah, Ms. Neelam Nalin Shah and Mr. Nirav Nalin Shah are also restrained from
associating themselves, with any listed public company and any public company which intends to raise money from
the public, for a period of 18 months or till the date of refund of money to the allottees whichever is later.
- For the purposes of paragraphs vii and viii, the period of restraint shall be counted from the date
of the interim order.
Mumbai
July 07, 2015 |