PRESS RELEASE - SEBI

March 29, 2016
PR No. 068/2016


Order in the Matter of M/s. Swarnabhumi Developers Limited

Shri Prashant Saran, Whole Time Member, SEBI has passed an order dated March 16, 2016 against the company viz. M/s. Swarnabhumi Developers Limited and its Directors viz. Mr. Biswanath Bhattacharya, Mr. Sanjoy Kumar Layek, Mr. Ranjit Kumar Sarkar, Mr. Prakash Mandal and Mr. Sudip Kr. Barua. The Order inter-alia directs as under:

  1. The Company, Swarnabhumi Developers Limited, its directors namely Mr. Biswanath Bhattacharya, Mr. Sanjoy Kumar Layek, Mr. Ranjit Kumar Sarkar, Mr. Prakash Mandal and Mr. Sudip Kr. Barua jointly and severally, shall forthwith refund the money collected by the Company through the issuance of Preference Shares/ 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 preference shares/ RPS, if any, with an interest of 15% per annum compounded at half yearly intervals, from the date when the repayments became due to the investors till the date of actual payment.
     
  2. The Company and/ or its present management are 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.
     
  3. The Company and its present management shall issue public notice, in all editions of two National Dailies (one English and one Hindi) and in one local daily 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.
     
  4. After completing the aforesaid repayments, the Company shall file a certificate of such completion with SEBI, within a period of three months from the date of this Order, from two independent peer reviewed Chartered Accountants who are in the panel of any public authority or public institution. For the purpose of this Order, a peer reviewed Chartered
     
  5. In case of failure of the Company, Swarnabhumi Developers Limited and its directors including Mr. Biswanath Bhattacharya, Mr. Sanjoy Kumar Layek, Mr. Ranjit Kumar Sarkar, Mr. Prakash Mandal and Mr. Sudip Kr. Barua in complying with the aforesaid 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 Company, its promoters/ directors and the persons/ officers who are in default, including adjudication proceedings against them, in accordance with law.
       
    3. would make a reference to the State Government/ Local Police to register a civil/ criminal case against the Company, its promoters, directors and its managers/ persons in-charge of the business and its schemes, 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, to initiate appropriate action as deemed fit.
       
    5. would also make a reference to the Ministry of Corporate Affairs to flag the names of notice directors in its database so that information may be perused by RoC or any other regulatory authority.
       
  6. The Company namely Swarnabhumi Developers Limited 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 urther 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 four years from the date of completion of refunds to investors, made to the satisfaction of SEBI, as directed above.
     
  7. The directors of the Company namely Mr. Biswanath Bhattacharya, Mr. Sanjoy Kumar Layek, Mr. Ranjit Kumar Sarkar, Mr. Prakash Mandal and Mr. Sudip Kr. Barua 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 four years on completion of the repayments, as directed above.
     
  8. As regards, Mr. Himangshu Kumar Guha, the proceedings against him stands abated in view of the death certificate.
     
    1. The above directions shall come into force with immediate effect.

It is observed that the company was engaged in fund mobilizing activity through issue of Redeemable PreferenceShares to more than 49 persons without complying with the relevant provisions of the Companies Act, 1956.

Mumbai
March 29, 2016

 

For full copy of order against SWARNABHUMI DEVELOPERS LTD., MR.BISWANATH BHATTACHARYA, MR.SANJOY KUMAR LAYEK, MR.RANJIT KUMAR SARKAR, MR.HIMANGSHU KUMAR GUHA, MR.PRAKASH MANDAL and MR.SUDIP KR.BARUA click here.