Misc. Application No. 200 of 2015 and Appeal No. 298 of 2015. Case: Alchemist Infra Realty Limited Vs Securities and Exchange Board of India. Securities and Exchange Board of India

Case NumberMisc. Application No. 200 of 2015 and Appeal No. 298 of 2015
CounselFor Appellant: V.S. Nankani, Senior Advocate, I.J. Nankani, Rishad Madora, Sonia Dube, Shatadru Chakraborty and H.S. Khokhawala, Advocates i/b. Nankani & Associates and For Respondents: Shyam Mehta, Senior Advocate and Rushin Kapadia, Advocate i/b K. Ashar & Co.
JudgesJ.P. Devadhar, J. (Presiding Officer) and Jog Singh, Member
IssueSecurities and Exchange Board of India
Judgement DateJune 15, 2015
CourtSecurities and Exchange Board of India

Order:

J.P. Devadhar, J. (Presiding Officer)

  1. Appellant is aggrieved by order passed by the Whole Time Member (WTM) of Securities and Exchange Board of India ("SEBI" for short) on 27th May, 2015. By that order, application made by Appellant seeking extension of 24 months for making refund to the investors in compliance with the order passed by WTM of SEBI on 21st June, 2013 has been rejected. By order dated 21st June, 2013, WTM of SEBI had directed the Appellant to wind up the scheme identified as CIS and refund the monies collected from the investors within a period of three months.

  2. Challenging the aforesaid order, Appellant had filed an appeal before this Tribunal. While dismissing the said appeal and upholding the order of SEBI, this Tribunal on 23rd July, 2013 had extended the time to comply with the order of SEBI by 18 months and directed the Appellant to submit a report to SEBI every six months giving details of the progress made in relation to amounts refunded to the investors. Liberty was also given to Appellant to approach SEBI seeking extension of time in case the need arises.

  3. Based on the bank certificates dated 21/2/2014, 12/9/2014 and 17/3/2015, Appellant claims to have refunded Rs. 11,27,05,80,926 out of the total amount of Rs. 19,16,39,43,857 refundable to the investors. Thus, leaving balance amount of Rs. 789,33,62,931 refundable to the investors as on 31/3/2015.

  4. The Appellant had filed an application before SEBI on 22/1/2015 seeking extension of time to refund the balance amount. That application is rejected by the impugned order mainly on the ground that despite letter dated 9/12/2014 and reminder letter dated 20/3/2015 the Appellant has failed to furnish registration number and address of the investors to whom the payments were made. Since requisite particulars were not furnished, it is held that the claim made by the Appellant regarding refund could not be verified and hence the application seeking extension of...

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