Order in respect of Jalaj Batra- in the matter of Vijay Textiles Limited

WTM/RKA/EFD-DRA-I/153/2015 BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA ORDER UNDER SECTIONS 11 AND 11B OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 IN RESPECT OF MR. JALAJ BATRA. In respect of Vijay Textiles Limited. 1. Pursuant to investigation in the unusual price and volume movement in the scrips of Vijay Textiles Limited (hereinafter referred to as “VTL” / "the company") and Shukun Constructions Limited (hereinafter referred to as “SCL”), Securities and Exchange Board of India (hereinafter referred to as “SEBI”) vide an ex-parte interim order cum Show Cause Notice dated September 20, 2007 restrained Mr. Jalaj Batra (hereinafter referred to as “Noticee”) from buying, selling or dealing in securities, directly or indirectly, till further directions. 2. The allegation leveled in the interim order cum SCN were that - (a) Mr. Jalaj Batra had failed to respond to the summons issued to him by SEBI and thus, prima facie, violated Section 11C (3) & (5) of SEBI Act, 1992 and Section 11 C (2) read with (5) of SEBI Act, 1992 and he had funded the clients for dealing in the said scrips; and (b) that he prima facie indulged in creating false or misleading appearance of trading in the scrip of SCL, dealt in security not intended to effect transfer of beneficial ownership and instead intended to operate only as a device to inflate, depress or cause fluctuations in the price of the scrip SCL. Shri Jalaj Batra has thus prima facie manipulated the price of the scrip SCL and violated Regulations 4 (1), 4 (2) (a), (b), (e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities market) Regulations, 2003.

3. In the said interim order cum Show Cause Notice it was also mentioned that any objections regarding the order may be filed within 15 days from the date of the order. The Noticee had sought inspection of documents which was duly given to the Noticee. The Noticee, however, did not submit any reply on allegation in the interim order cum Show Cause Notice. The notices providing opportunities of personal hearings were returned undelivered and the Noticee did not avail any of them. Subsequently, vide his letter dated April 30, 2015, the Noticee requested for vacating the interim order. The Noticee availed the opportunity of personal hearing on June 11, 2015 when his authorised representatives appeared before me and made submissions and sought time to file written submissions. The written submissions were submitted by the Noticee on June 30,

Order in the matter of Vijay Textiles Ltd.

2015. The submissions of the Noticee in brief are as under:

a. The summons sent were SEBI in the matter of VTL were never delivered to the Noticee and there is no acknowledgement of the delivery of the summons to the Noticee. The Noticee during the relevant period mostly stayed abroad and was travelling and was never aware of the summons. b. For alleged non-compliance of summons issued by the Investigating Officer, SEBI had already imposed monetary penalty upon him and the Adjudicating Officer, vide order dated July 30, 2010, had imposed a penalty of Rs. 5,00,000. The Noticee in order to buy peace has already paid the penalty imposed by Adjudicating Officer in this matter and no further action is required. c. There was no urgency when SEBI passed an order in September, 2007. d. The Noticee was not connected to the VTL or SCL or their promoters and nothing has been proved against him. The SEBI order of 2007 clearly indicated that the Noticee was not part of any group engaged in manipulation. e. The Noticee was denied cross-examination and was only given partial inspection of documents. The statements recorded by SEBI of various entities have a lot of conflicts and the statements of these entities cannot be relied upon. f. The Noticee was never involved in price manipulation in the scrip of VTL and the address mentioned in KYC is not of the Noticee.

SEBI has not investigated as to how common address came on KYCs and who was the owner of the common address. g. The documents belonging to the Noticee were misused by some entities without the knowledge of the Noticee. The bank account, demat account and trading account of Noticee was in control of someone else and the Noticee was travelling and was not in India. 4. I have carefully considered the interim order cum Show Cause Notice, the replies/submissions and the relevant material available on record. I note that in the interim order cum Show Cause Notice the charges against the Noticee have been leveled in respect of two scrips, viz. VTL and SCL and charges are separate and independent in respect thereof as mentioned in para 2 above. It is noted that the proceedings before me are limited to the charge in respect of scrip of VTL. The specific charge for determination in this order is that the Noticee had failed to respond to the summons issued to him by SEBI and he had funded the clients for dealing in the scrip of VTL. 5. It is admitted position that vide order dated July 30, 2010 passed by the Adjudicating Officer a penalty of ` 5,00,000 was imposed on the Noticee for non-compliance of summons in the scrip of VTL which has been paid by him.

With regard to allegation of funding of trades in scrip of VTL it is noted that the said allegation was on the basis of prima facie observation which was predominantly in respect of scrip of SCL. It is also noted that the alleged default pertains to November 2006. The investigation was completed in the year 2007 and thereafter the interim order cum SCN was issued on September 20,2007 whereby the Noticee has already been restrained from dealing in securities on the basis of prima facie findings and such restraint still continues. There is no detail/information on record to indicate that investors suffered any loss on account of acts and omissions of the Noticee. 6. Considering the above facts and circumstances of the case, I, do not deem necessary to issue any other direction to the Noticee or to continue the direction issued to the Noticee vide the interim order dated September 20, 2007. The present proceedings commenced by said interim order in respect of VTL are disposed of accordingly without any further directions.

Sd/- DATE: November 20th, 2015 RAJEEV KUMAR AGARWAL PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA