{"id":173373,"date":"2003-07-08T00:00:00","date_gmt":"2003-07-07T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/in-re-save-earth-plantations-ltd-vs-unknown-on-8-july-2003"},"modified":"2019-04-06T06:37:40","modified_gmt":"2019-04-06T01:07:40","slug":"in-re-save-earth-plantations-ltd-vs-unknown-on-8-july-2003","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/in-re-save-earth-plantations-ltd-vs-unknown-on-8-july-2003","title":{"rendered":"In Re: Save Earth Plantations Ltd. vs Unknown on 8 July, 2003"},"content":{"rendered":"<div class=\"docsource_main\">Securities Appellate Tribunal<\/div>\n<div class=\"doc_title\">In Re: Save Earth Plantations Ltd. vs Unknown on 8 July, 2003<\/div>\n<div class=\"doc_bench\">Bench: G Bajpai<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p> G.N. Bajpai, Chairman  <\/p>\n<p>1. M\/s Save Earth Plantations Ltd (hereinafter referred to as the company) mobilised funds from the investors\/public under the collective investment schemes being operated by it. Pursuant to the press release and the public notice issued by Securities and Exchange Board of India (hereinafter referred to as SEBI) on November 26, 1997 and December 18, 1997, the company filed certain information\/details in respect of its schemes with SEBI regarding its collective investment schemes.\n<\/p>\n<p>2. Subsequent to the notification of the SEBI (Collective Investment Schemes) Regulations, 1999 (hereinafter referred to as the said Regulations) on October 15, 1999, the company applied for registration under the provisions of the said Regulations. The application for registration and other details connected with the application were examined by SEBI, and found to be unsatisfactory. In view of the same, various opportunities of being heard were also granted to the company. The company was granted a hearing on November 9, 2000 but did not appear for the said hearing and instead sought for an adjournment.  Thereafter the company was granted another hearing on June 14, 2001 but did not appear for the said hearing and requested for another date of hearing.  Thereafter, a hearing was granted on July 9, 2001 and was attended by Shri Sanjay Kumar Mishra , Director and Shri R. N. Prasad, Director.  However as the company was not able to fulfill certain requirements of the Regulations for grant of registration, its application seeking registration was rejected by SEBI on November 27, 2001.\n<\/p>\n<p>3. While intimating the grounds of rejection of the application of the company, SEBI vide its letter dated November 28, 2001, advised the company that pursuant to the rejection of its application, the company, should wind up its existing Collective Investment Scheme(s) and make repayment to the investors in the manner specified in Regulation 73 of the said Regulations.\n<\/p>\n<p>4. Accordingly, the company was required to send an information memorandum to the investors, who had subscribed to its scheme(s), within 2 months from the date of receipt of the intimation from SEBI. Furthermore, on completion of the winding up and repayment to the investors in terms of Regulations 73(8) &amp; 73(9) of the Regulations, and as per the intimation given vide public notice no davp  99\/716, the company was required to file the winding up and repayment report in the format prescribed by SEBI so as to reach SEBI within 31\/2 months of the date of the information memorandum.\n<\/p>\n<p>5. Although the company submitted some interim redressal reports indicating circulation of information memorandum to the investors, it did not file the winding up and repayment report in the format prescribed by SEBI. It is relevant to note that SEBI, vide its letter dated September 4, 2002, intimated the company that it had made itself liable for further action in terms of the said Regulations and SEBI Act, 1992. Despite the same, the company has failed to comply with the directions conveyed to them vide SEBI&#8217;s letter dated November 28, 2001, i.e. to wind up its existing scheme(s) and make repayment to the investors in the manner specified in Regulation 73 of the said Regulations. Instead the company has been seeking more time for the same, on one pretext or the other. Sufficient opportunities were granted to the company to comply with the requirements of Regulation 73 of the said Regulations but the company has neither completed the winding up &amp; repayment of its schemes nor has satisfactorily redressed the pending complaints. It is therefore clear that the company has failed to wind up its schemes and repay the investors within 5 1\/2 months from the date of the receipt of the intimation from SEBI and thus violated the provisions of Regulations 73 of the said Regulations.\n<\/p>\n<p>6. Now, therefore, in exercise of the powers conferred upon me under section 11B of the SEBI Act, 1992 and Regulations 65 of SEBI (Collective Investment Schemes) Regulations, 1999 I hereby direct the company to refund the money collected under the scheme(s) with returns which is due to the investors as per the terms of the offer within a period of one month from the date of this order failing which the following actions would follow:\n<\/p>\n<p>1.      Initiation of prosecution proceedings, under Section 24 of the SEBI Act, 1992, against the company \/ its promoters \/ directors \/ managers \/ persons in charge of the business of its scheme(s),<\/p>\n<p>2.      Debarring the company \/ its promoters\/ directors \/ managers \/ persons in charge of the business of its schemes (s) from operating in the capital market and accessing the capital market for a period of 5 years,<\/p>\n<p>3.      Writing to the State Government \/ local police to register civil \/criminal cases against the company and its promoters \/ its directors \/ its managers \/ persons in charge of the business of its schemes (s) for apparent offences of fraud , cheating, criminal breach of trust and misappropriation of public funds, and <\/p>\n<p>4.      Writing to the department of company affairs, to initiate the process of winding up of the company.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Securities Appellate Tribunal In Re: Save Earth Plantations Ltd. vs Unknown on 8 July, 2003 Bench: G Bajpai ORDER G.N. Bajpai, Chairman 1. M\/s Save Earth Plantations Ltd (hereinafter referred to as the company) mobilised funds from the investors\/public under the collective investment schemes being operated by it. Pursuant to the press release and the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-173373","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>In Re: Save Earth Plantations Ltd. vs Unknown on 8 July, 2003 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/in-re-save-earth-plantations-ltd-vs-unknown-on-8-july-2003\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In Re: Save Earth Plantations Ltd. vs Unknown on 8 July, 2003 - Free Judgements of Supreme Court &amp; 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