Nicer Green Housing Infrastructure ... vs Sebi

BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI Date : 25.02.2019

Appeal No. 307 of 2018 1.

Nicer Green Housing Infrastructure Developers Ltd.

2. Pipal Singh

3. Ranjit Singh

4. Surinder Kaur

5. Karanjit Singh

Sardar Colony, Near Gupta Petrol Pump, Firozepur City, Punjab 152 002. ......Appellants

Versus

Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. ...... Respondent

Mr. J. S. Saluja, Advocate for the Appellants. Mr. Mustafa Doctor, Senior Advocate with Ms. Vidhi Jhawar, Mr. Anubhav Ghosh, Advocates i/b The Law Point for the Respondent.

CORAM : Justice Tarun Agarwala, Presiding Officer Dr. C. K. G. Nair, Member

Per : Justice Tarun Agarwala, Presiding Officer (Oral)

1. The Appellant No. 1 is a company incorporated under the

Companies Act, 1956 as a public limited company and is engaged in

the business of acquiring agricultural land and developing the same

for the purpose of re-sale. Securities and Exchange Board of India

(hereinafter referred to as, 'SEBI') found that the activity of fund

mobilization by the appellant no. 1 under its scheme fell within the 2 ambit of "Collective Investment Scheme" as defined under Section

11AA of Securities and Exchange Board of India Act, 1992

(hereinafter referred to as, 'SEBI Act'). SEBI issued an order dated

November 9, 2015 under Section 19 read with Sections 11(1), 11B

and 11(4) of the SEBI Act read with Regulation 65 of Securities and

Exchange Board of India (Collective Investment Schemes)

Regulations, 1999 issuing a slew of directions restraining the

appellant and its directors from collecting any money from the

investors or to launch or to carry out any investments schemes. SEBI

further directed to refund the money collected under its scheme to the

investors and thereafter wind up the company.

2. The appellants being aggrieved by the said order filed an Appeal

No. 86 of 2017 before the Securities Appellate Tribunal wherein the

appellants contended that they are ready and willing to comply with

the order passed by SEBI contending that out of an amount of

Rs. 31.71 crore collected the appellants have already refunded

Rs. 27.48 crore and that the appellants are ready and willing to

refund the balance amount in a time bound manner. Based on the

said contention the appeal was disposed of by the Tribunal by the

order dated November 13, 2017 directing the appellants to make a

representation setting out in detail the amounts already paid to the

investors, their names, the quantum of amount paid and the mode and

manner in which the balance amount would be payable to the

remaining investors. The Tribunal directed that if such a 3 representation was filed alongwith details, SEBI would

decide the same in accordance with law.

3. Based on the said order, a representation dated November 25,

2017 was made by the appellants which was disposed of by the

impugned order dated June 1, 2018. SEBI held that no proof has

been filed by the appellants to indicate the amounts paid by the

appellants to the investors. The appellants being aggrieved by the

said order have filed the present appeal.

4. Having heard the learned counsel for the appellants and upon

perusal of the memo of appeal and the impugned order, we find that

no proof has been filed either before SEBI or even before this

Tribunal to show that the appellants had refunded a sum of Rs. 27.48

crore and that they are ready and willing to pay the balance amount

in a time bound manner. In the absence of any evidence being filed,

we are of the opinion that there is no infirmity in the order passed by

SEBI disposing of their representations.

5. The appeal lack merit and is dismissed summarily.

Sd/-

Justice Tarun Agarwala Presiding Officer

Sd/-

Dr. C. K. G. Nair Member 25.02.2019 Prepared & Compared by PTM