The Securities and Exchange Board of India (SEBI) on Monday imposed a fine of Rs. 70 lakhs on Nicer Green Housing and Infrastructure Developers and four other individuals for mobilizing funds through an unregistered Collective Investment Scheme (CIS).
It was observed that the companywas engaged in the aforementioned activities from the public during the financial years 2009-10 and 2010-11, which was allegedly in the nature of CIS as defined in Section 11AA of the Securities and Exchange Board of India Act, 1992 (SEBI Act) without obtaining a certificate of registration from SEBI as required under Section 12(1B) of the SEBI Act and Regulation 3 of the SEBI (Collective Investment Schemes) Regulations, 1999. SEBI had received several complaints from investors, wherein it was alleged that they had not repaid the investors the amount due to them on maturity. The complainants have enclosed copies of certificates wherein it is shown that the customer is promised a higher amount on maturity under a buy back agreement, herein case repurchase of plot.
G Ramar, the adjudicating officer appointed to enquire into and adjudged the alleged non-compliance while passing the order held, “Further, in the peculiar facts and circumstances of this case the default has occurred not due to any ignorance of the Notices but with their full intention. Considering the quantum of monies raised through the illegal schemes, in my view, the default is grave and the gravity of this matter cannot be ignored. Therefore, no lenient view should be taken in this matter and the case deserves imposition of monetary penalty proportionate to the default as found in this case.”Subscribe Taxscan AdFree to view the Judgment
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