Karmbhoomi Real Estate Ltd. And Others vs Sebi

Date of Decision : 21.11.2017

Appeal No.143 of 2016

1.

Karmbhoomi Real Estate Limited 1st Floor, Tera Tower, Bhuteshwar Road, Mathura, Uttar Pradesh 281 001

2. Manoj Kumar Sengar H.N. 190, Chaatikara, Mathura, Uttar Pradesh.

3. Devindra Pal Singh 1/36, Surendra Nagar, Aligarh, Uttar Pradesh 202137.

4. Sardar Singh V.P.O Chaatikara Mathura Uttar Pradesh.

5. Mahipal Singh, V.P.O Chaatikara Mathura Uttar Pradesh. ..... Appellants

Versus

Securities & Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051. ...... Respondent

Mr. M.S. Bhardwaj, Advocate for the Appellants.

Mr. M.P. Rao, Senior Advocate with Mr. Chirag Bhavsar, Advocate i/b MDP & Partners for the Respondent.

CORAM : Justice J.P. Devadhar, Presiding Officer Jog Singh, Member Dr. C.K.G.Nair, Member

Per : Justice J.P. Devadhar (Oral) 2

1. This appeal is filed to challenge the order passed by the Whole Time

Member ('WTM') of Securities and Exchange Board of India ('SEBI' for

short) on 3rd December, 2015. By the said order inter alia it is held that the

schemes floated by the Appellant no.1 are Collective Investment Schemes

and the appellant and its directors are interalia directed to refund the money

collected from the investors within the time set out therein.

2. Counsel for the appellants state that without prejudice to their rights

that the schemes floated by the Appellant no.1 do not constitute Collective

Investment Schemes the appellants have refunded part of the amounts

collected from the investors and that the appellants are ready and willing to

refund the balance amount to the investors in a time bound manner.

3. Counsel for SEBI states that the refunds allegedly made by the

appellants are yet to be verified by SEBI.

4. Since the appellants are ready and willing to refund the amounts to the

investors as stipulated in the impugned order passed by SEBI, without

going into the merits of the contention raised by the appellants that the

schemes floated by the appellants do not constitute CIS, we dispose of the

appeal by permitting the appellants to make a representation to SEBI

setting out in detail the names and the quantum of amount refunded to the

investors and the mode and the manner in which the balance amount would

be refunded to the investors. Appellants are also directed to furnish all

information/documents demanded by SEBI.

5. Accordingly, we dispose of the appeal by directing the appellants to

make a representation to SEBI within a period of 4 weeks from today

giving details of the amounts already refunded and the mode and the

manner in which balance amount would be refunded. If the appellants

make a representation within period of 4 weeks from today, then SEBI shall 3

consider the same and pass appropriate order in accordance with law. If the

appellants fail to submit the representation within 4 weeks from today, then

the impugned order shall stand revived and SEBI shall be entitled to

enforce the same in accordance with law.

6. Appeal is disposed of in the above terms with no order as to costs.

Sd/-

Justice J. P. Devadhar Presiding Officer

Sd/-

Jog Singh Member

Sd/-

Dr. C.K.G.Nair Member

21.11.2017 Prepared and compared by RHN