January 07, 2016
PR No. 007/2016

Order in the Matter of Adorable Agrotech Limited- In respect of Shri Prashanta Ghosh

Shri Prashant Saran, Whole Time Member, SEBI has passed an order dated December 29, 2015 under section 19 of the Securities and Exchange Board of India Act, 1992 read with sections 11(1), 11(4), 11A and 11B against the past director of the captioned company viz. Shri Prashanta Ghosh. The Order inter-alia directs as under:

  1. The noticee, Mr. Prashanta Ghosh shall, jointly and severally along with the Company and others as ordered vide SEBI Order dated October 01, 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), 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.
  2. The noticee shall also provide a full inventory of his assets and properties and details of all bank accounts, demat accounts and holdings of shares/securities, if held in physical form.
  3. All other directions issued vide Order dated October 01, 2015 in respect of making refunds and reporting of the same shall apply mutasis mutandis to this noticee.
  4. In case of failure of the noticee 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, -
    1. shall recover such amounts in accordance with section 28A of the SEBI Act including such other provisions contained in securities laws.
    2. may initiate appropriate action against the noticee, including adjudication proceedings, in accordance with law.
    3. 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
    4. would also make a reference to the Ministry of Corporate Affairs.
    5. The noticee is 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. He is 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.
    6. The above directions shall come into force with immediate effect.

January 07, 2016


For full copy of order against MR.PRASHANTA GHOSH click here.