Order in the matter of Dhanolty Developers Ltd.

WTM/GM/DRA-3, EFD-1/ 04/2020-21

SECURITIES AND EXCHANGE BOARD OF INDIA MISCELLANEOUS ORDER In compliance of the directions contained in Order dated October 15, 2019 passed in WP (C) No. 4174 of 2019 by the Hon’ble High Court of Jharkhand

In the matter of Dhanolty Developers Ltd.

1. Background – 1.1. A Writ Petition bearing number W.P. (C) No. 4174 of 2019 was filed before the Hon’ble High Court of Jharkhand by Dhanolty Developers Ltd. (for short “Dhanolty Developers”/ the “Company”) and Sanjay Walia praying inter alia for the quashing of the notice of attachment of bank accounts dated July 11, 2019 and the notice of attachment of demat accounts dated July 11, 2019 under the attach-ment proceeding no. 4628 of 2019 in certificate no. 2390 of 2019.

1.2. The Hon’ble High Court of Jharkhand disposing of the said Writ Petition directed SEBI to dispose of the application dated April 23, 2019 submitted by Dhanolty Developers Ltd., the Petitioner in the said Writ Petition.

1.3. In this regard, a chronology of the orders passed by SEBI in the said matter, prior to the order of the Hon’ble High Court of Jharkhand is placed hereunder:

Order in the matter of Dhanolty Developers Ltd.

Table-1

Sl. No. Order Date

1. Ex-parte ad interim order passed by SEBI inter alia direct- July 30, 2014 ing Dhanolty Developers Ltd. and its Promoters not to collect any fresh funds or divert the funds and provide information regarding money mobilized, relevant docu-ments etc.

2. Final Order passed by SEBI inter alia directing Dhanolty November Developers Ltd. and its Promoters to windup the 04, 2015 schemes being run by them, not to alienate any property held by the company, and provide full inventory of the assets, details of bank accounts etc. after providing op-portunity of personal hearing and considering replies submitted by the Noticees.

3. Order passed by the Hon’ble SAT (in the appeal filed by October 06, the company challenging the above final order) directing 2017 the appellants to file a representation before SEBI within a period of 4 weeks from the date of its order setting out in detail the amount already refunded to the investors and also the mode and the manner in which the bal-ance amount would be refunded to the investors. The appellants were also directed to furnish to SEBI, rele-vant copies of balance sheets of the company and details of the total amount collected by the company from the investors under the scheme which were held to be CIS within a period of 45 days from the date of its order. The appellants were further directed to disclose to SEBI the list of assets owned by them within a period of 2 weeks and give an undertaking to SEBI that they shall not sell the said assets without the prior approval of SEBI.

4. Order passed by the Hon’ble SAT (in review of its order January 30, dated October 06, 2017) adding the words, “as are avail- 2018 able with the appellants” after the words “which are held to be CIS” to para 5 of its order dated October 06, 2017. Hon’ble SAT also extended the time to make a represen-tation before SEBI for a further period of 2 weeks from its order dated January 30, 2018.

5. Order passed by SEBI disposing of the representation March 29, submitted by the company by way of a letter dated Feb- 2019 ruary 12, 2018, upon providing a personal hearing. It was stated in the said Order that in the absence of any other information arising from the SEBI Final Order, the amount of Rs. 2.5 crore shall be treated to be the minimum amount liable for refund by the Company to the investors.

6. Order passed by the Hon’ble High Court of Jharkhand October 15, in Dhanolty Developers Ltd. and Another v. Securities 2019 and Exchange Board of India, WP (C) No. 4174 of 2019 directing SEBI to dispose of the application dated April 23, 2019 submitted by Dhanolty Developers Ltd.

2. Notice of Hearing – 2.1. A personal hearing was granted to Dhanolty Developers Ltd. on January 23, 2020 at 2.45 pm in Mumbai for the disposal of its application dated April 23, 2019. The Company entered appearance through its Director, Shri. Sanjay Walia and Advo-cates, Shri. T.N. Saxena and Shri. H.C. Kharbanda.

2.2. The Advocates appearing for the Entity were asked to furnish the documents/in-formation, specified in the Hon’ble SAT’s order dated October 06, 2017 in Appeal No. 44 of 2016 (modified subsequently by order dated January 30, 2018), and any other additional submissions pertaining to the matter, so that the application dated April 23, 2019 could be disposed of.

2.3. The Advocates appearing for the Company submitted that the said documents/in-formation were not available at present. Accordingly, upon the request of the Ad-vocates, the Company was granted time till February 26, 2020 to provide the doc-uments/information as specified in the Hon’ble SAT’s above mentioned orders along with any other additional submissions.

3. Replies and Submissions Received From the Noticees – 3.1. Pursuant to the above-mentioned personal hearing before me on January 23, 2020, SEBI has received a reply dated February 25, 2020 along with certain bank state-ments from Dhanolty Developers.

3.2. In the said reply, the Company has stated that as all files of the Company were lying at its premises which were under seal of local authorities, with great effort they could arrange for certain documents and reconcile them to provide and facil-itate the conclusion as to how much public money was collected by the Company or invested in the Company, and how much was paid back to the public.

3.3. It has been stated by the Company that it maintained accounts with the following banks: Table-2

Serial Bank Name and Account Num- Bank Statement Balance No. Branch ber Provided

1. AXIS Bank, DLF 911020025002664 Bank Statement 0 Gurgaon Branch for the period (Haryana) 01/04/2010 to 01/12/2014. Last entry is of 25/01/2014

2. Yes Bank, Con- 013683900000789 Bank Statement 86.77 (as on naught Place for the period 12/06/2014) Branch (New 01/01/2001 to Delhi) 02/02/2016. Last entry is of 12/06/2014

3. ICICI Bank, Su- 031405002740 Bank Statement 0 shant Lok Gur-for the period gaon Branch (Har- 01/01/2013 to yana) 31/12/2013. Last entry is of 21/11/2013

4. ICICI Bank, Raj- 036405002761 Bank Statement 4388.87 (as on inder Nagar for the period 11/02/2013) Branch (New 06/06/2011 to Delhi) 02/02/2016. Last entry is of 11/02/2013

5. State Bank of In- 31845613256 Bank Statement 1456.5 (as on dia, Sushant Lok-1 for the period 31/03/2014) Gurgaon Branch 01/04/2011 to (Haryana) 31/03/2014. Last entry is of 31/03/2014

6. Bank of Baroda Details not availa- - -ble with the Com-pany

3.4. SBI account number 31845613256 and ICICI Bank account number 036405002761 It has been submitted that money of customers was transacted from the SBI ac-count bearing number 31845613256 and the ICICI Bank account bearing number 036405002761, and the total transactions in the said two accounts amounted to Rs. 3,01,10,123. It has been further stated that out of the total amount of Rs. 3,01,10,123 received in the above accounts, Rs. 62,34,567 was deposited by Sanjay Walia from his own resources. It has been stated that in the aforesaid accounts, the actual public money received was about Rs. 2.50 crore, and more than the said amount has already been paid to the public.

3.5. AXIS Bank account number 911020025002664, Yes Bank account number 013683900000789 and ICICI Bank account number 031405002740 It has been submitted that the total transactions made through the above-men-tioned bank accounts amounted to Rs. 1,70, 87, 096. The break-up of the deposits made in the above accounts is as under:

Table- 3

Serial Depositor/Mode Amount No. (Rs.)

1. Sanjay Walia (from own resources) 51,82,600

2. Interbank transactions (money not deposited from out- 70,00,000 side)

3. Cash deposited upon withdrawal from the aforesaid 30,00,000 SBI and ICICI accounts

4. Public 15 to 17 lakh

3.6. In respect of the above, it has been submitted by the Company that after the clo-sure/sealing of business premises, payment of Rs. 60 lakh was made from the said three accounts.

3.7. Further, the Company has submitted that advertisements in the newspapers have been given inviting depositors/investors but no one has turned up till date.

4. Consideration of Application Received From the Company – 4.1. As already stated in the previous part of the Order, a Writ Petition bearing number W.P. (C) No. 4174 of 2019 was filed before the Hon’ble High Court of Jharkhand, by the Company praying for the quashing of the notice of attachment of bank accounts dated July 11, 2019 and the notice of attachment of demat accounts dated July 11, 2019 under the attachment proceeding no. 4628 of 2019 arising out of certificate no. 2390 of 2019.

4.2. With respect to the prayer made for the quashing of the notices of attachment as mentioned above, the Hon’ble Jharkhand High Court directed that the application dated 23.04.2019 of the Petitioner-Company be disposed of by SEBI.The relevant part of the Court’s order dated October 15, 2019 is extracted as below: “ this Court is of the view that since the matter is pending before the authorities who have passed order as under annexure-6, it would not be proper for this Court to exercise its mind on the merit of the claim of the petitioners rather it would be appropriate to direct the authorities to dispose of the application dated 23.04.2019 at earliest.”

4.3. Accordingly, the application dated April 23, 2019 submitted by Dhanolty Devel-opers Ltd. is being taken up for consideration, in terms of above directions of the Hon’ble High Court of Jharkhand. The contents of the application dated April 23, 2019 received from Dhanolty Developers Ltd are as under:

4.3.1.That the Order dated March 29, 2019 of the WTM, SEBI was delivered to a tenant in the building in which the office of Dhanolty was situated, and upon returning from an outstation visit, the envelope was handed over to the Managing Director of the company on April 22, 2019.

4.3.2.That upon perusal of the said Order, it was revealed that a letter dated February 25, 2019 from SEBI to Dhanolty seeking additional infor-mation/submission was undelivered.

4.3.3.That a copy of the letter dated February 25, 2019 which was returned undelivered be provided so that the company can participate in the pro-ceedings from the stage when it was proceeded ex-parte due to the return of the said letter.

4.3.4.That the order reveals on the face of it that it is an ex-parte order and for the ends of justice the order be recalled.

4.4. Before proceeding with the substantive consideration of the prayer made in the application, in light of the documents/information submitted by the Company, it would be relevant to address the preliminary claim of the Company that the SEBI Order dated March 29, 2019 was ex-parte.

4.5. The application dated April 23, 2019 made by the Company prays that “the ex-parte order dated 29-03-2019 passed against the company may kindly be recalled and the proceedings be initiated from the stage from where they were proceeded ex-parte for the ends of justice and fair play.”(emphasis supplied). In this connection, reference is made to para no. 5 of the SEBI Order dated March 29, 2019 wherein it has been specifically stated that Noticee No. 2, Sanjay Walia, Director of Dhanolty Developers Ltd. (Noticee No. 1), appeared in person along with Shri T.N. Saxena and Shri. H.C. Kharbanda, Advocates for personal hearing on June 18, 2018 and made submis-sions before the WTM, SEBI. Further reference is drawn to para 6 of the SEBI Order dated March 29, 2019. The said paragraph notes, “During the course of the hearing, the noticee was directed to provide details regarding his/company’s bank accounts based on which SEBI would write to the concerned banks for providing bank statements so as to verify the noticee’s claims of refunds already carried out. Noticee agreed to submit the said information within 15 days. However till date, no submissions have been received from the noticees.” As observed from the said paragraph, Sanjay Walia, Director of Dhanolty Developers Ltd. was advised to provide details regarding his/company's bank accounts based on which SEBI would write to the concerned banks for provid-ing bank statements so as to verify the noticee's claims of refunds already carried out. The Noticee agreed to submit the said information within a period of fifteen (15) days. However, the same was never received.

4.6. Thus, not only was the Company given a hearing on June 18, 2018, it was also given 15 days time to produce bank account details so as to verify its claims of refund. The Company did not furnish the details. Thereafter, on February 25, 2019, the Noticee was given a last chance to furnish additional information/submissions. The said letter sent by speed-post was returned undelivered. Thereafter, a consid-ered order was passed on March 29, 2019. It is stated that no genuine prejudice has been caused to the Company because of the non-receipt of the said reminder or advice dated February 25, 2019, as the Company avoided furnishing the bank de-tails and statements as agreed by its authorised representatives, within the timeframe of 15 days from the date of the personal hearing till the time of passing the order dated March 29, 2019.

4.7. As mentioned earlier, the material submissions made by the Company during the personal hearing have been considered in para no. 5 of the SEBI Order dated March 29, 2019. Thus, I find that the categorisation of SEBI’s March 29, 2019 Order as ex-parte is unfounded, without merit and untrue to that extent. The sub-mission made by the Company/petitioner before the Hon’ble Jharkhand High Court in WP (C) No. 4174 of 2019 to this effect, is a misrepresentation and a suppression of material facts.

4.8. Upon a consideration of the submissions made by the Company by way of its letter dated February 25, 2020, it is understood that as per the Company the amount of money disbursed to the public is Rs. 2.50 crore along with interest. In this regard, details of ledger accounts maintained with respect to the above men-tioned bank accounts of the Company and bank statements of the various bank accounts of the Company have been provided. Further, ledger accounts main-tained in respect of Sanjay Walia, Neeta Verma, Organic Biofarm Pvt. Ltd. and B2B Realty have also been provided. In this respect, it has been submitted that even though the Company had several bank accounts, the money of customers was transacted from the two main bank accounts of the Company, namely, the SBI account bearing number 31845613256 and the ICICI Bank account bearing num-ber 036405002761. It has further been asserted by the Company that the actual public money received was about Rs. 2.50 crore, and more than the said amount has already been paid back to the public. It is also noted that none of the bank statements pertain to the period following the date of the SEBI Interim Order dated July 30, 2014. The ledger accounts maintained in respect of SBI account bearing number 31845613256 (period: April 01, 2011 to March 31, 2014) and ICICI Bank account bearing number 036405002761 (period: April 01, 2011 to March 31, 2014) disclosing the generation of vouchers with respect to payments, and the bank statements provided have been perused.

In this regard, in order to gauge the transfer of funds from the SBI account bearing number 31845613256 and the ICICI Bank account bearing number 036405002761 to customers, a sum-mary of debit transactions gleaned and collated from the said bank statements of the bank accounts is placed hereunder. The bank statement of the SBI account bearing number 31845613256 pertained to the period 01/04/2011 to 31/03/2014; similarly, the bank statement for the ICICI Bank account bearing number 036405002761, though states that it pertains to the period 06/06/2011 to 02/02/2016, the last entry is that of 11/02/2103. The said summary captures debit entries effected through online transfers or cheques, and in respect of indi-viduals/entities not being the directors/promoters of the Company. Also, entries with respect to cash withdrawals and entries where the narrations indicated that the payments were for the Company’s expenses e.g., salary to employees, have been excluded.

Table 4 SBI ACCOUNT (31845613256) ICICI ACCOUNT (036405002761) Date Name/Narration Cheque Amount Date Name /Narra- Cheque Amount Number tion number 30/08/2011 CAS PRES CHQ Cheque No. 21250 04/07/2011 SATPAL GABA Cheque 64000 110238 No.804028 30/08/2011 CAS PRES CHQ Cheque No. 18700 05/07/2011 KRISH SHARMA Cheque 13000 110232 No.804927 30/08/2011 CAS CHQ XFER Cheque No. 7650 06/07/2011 PRADEEP KU- Cheque 12000 TO 110271 MAR VERMA No.804929 0011097589400 01/09/2011 DR THRU CHQ Cheque No. 850 07/07/2011 RAKESH NA- Cheque 6000 TRF TO 3065208 110266 RANG No.804933 01/09/2011 DR THRU CHQ Cheque No. 3400 07/07/2011 MAMTA Cheque 1000 TRF TO 3065208 110265 No.804930 02/09/2011 CAS PRES CHQ Cheque No. 3400 07/07/2011 MEENA SONI Cheque 1000 110231 No.804931 02/09/2011 CAS PRES CHQ Cheque No. 27200 12/07/2011 MANISH Cheque 9000 110229 No.804943 02/09/2011 CAS PRES CHQ Cheque No. 6800 12/07/2011 ANUJ DANGI Cheque 1000 110230 No.804939 02/09/2011 CAS PRES CHQ Cheque No. 1700 13/07/2011 AMAN SONI Cheque 1000 110236 No.804938 02/09/2011 CAS PRES CHQ Cheque No. 1700 19/07/2011 SATISH Cheque 50000 110237 GROVER No.804945 02/09/2011 CAS PRES CHQ Cheque No. 21250 20/07/2011 SATPAL GABA Cheque 1,00,000 110252 No.804946 02/09/2011 CAS PRES CHQ Cheque No. 3400 21/07/2011 TRANSFER - 30,000 110251 BHUPENDRA 05/09/2011 CAS PRES CHQ Cheque No. 45900 21/07/2011 TRANSFER - 5000 110226 ANITA 05/09/2011 CAS PRES CHQ Cheque No. 3400 21/07/2011 TRANSFER - 12500 110234 RAKESH KU- MAR 05/09/2011 CAS PRES CHQ Cheque No. 3400 26/07/2011 SAGUNA NA- Cheque 1000 110233 RANG No.804936 05/09/2011 CAS CASH Cheque No. 110000 26/07/2011 VAIBHAV Cheque 1000 Cheque 225666 No.804934 05/09/2011 DR THRU CHQ Cheque No. 850 28/07/2011 TRANSFER - 2000 TRF TO 1011824 110274 SUNNY DHAIY 05/09/2011 DR THRU CHQ Cheque No. 5100 28/07/2011 TRANSFER SAT- - 5000 TRF TO 1011824 110272 INDER SA 05/09/2011 DR THRU CHQ Cheque No. 850 01/08/2011 PRESIDIUM Cheque 20000 TRF TO 1011824 110273 No.804948

06/09/2011 DR THRU CHQ Cheque No. 13600 01/08/2011 TRANSFER - 50000 TRF TO A/C NO 110240 BHUPENDRA 06/09/2011 DR THRU CHQ Cheque No. 3400 01/08/2011 ORGANIC DO- - 3500 TRF TO A/C NO 110228 MAIN 1 06/09/2011 DR THRU CHQ Cheque No. 850 04/08/2011 TRANSFER - 50000 TRF TO A/C NO 110246 BHUPENDRA 1 06/09/2011 DR THRU CHQ Cheque No. 850 06/08/2011 DEEPAK RAJ- Cheque 4000 TRF TO A/C NO 110248 PAL No.804935 1 06/09/2011 DR THRU CHQ Cheque No. 5100 08/08/2011 TRANSFER - 20,000 TRF TO A/C NO 110241 MOEEN SHAH 1 06/09/2011 DR THRU CHQ Cheque No. 3400 10/08/2011 SATPAL GABA Cheque 100000 TRF TO A/C NO 110247 No.804949 1 06/09/2011 DR THRU CHQ Cheque No. 3400 11/08/2011 BHUPENDRA - 25000 TRF TO A/C NO 110242 1 06/09/2011 DR THRU CHQ Cheque No. 8500 11/08/2011 PIN REFUND - 2100 TRF TO A/C NO 110243 AMOUNT 1 06/09/2011 DR THRU CHQ Cheque No. 850 12/08/2011 TRANSFER TO Cheque 90000 TRF TO A/C NO 110249 SATPAL GABA No.809401 1 06/09/2011 DR THRU CHQ Cheque No. 3400 23/08/2011 SHYAM MANO- - 25000 TRF TO A/C NO 110244 HAR TIWARI 1 06/09/2011 DR THRU CHQ Cheque No. 13600 25/08/2011 RAKESH KU- - 9535 TRF TO A/C NO 110239 MAR 1 06/09/2011 DR THRU CHQ Cheque No. 1700 25/08/2011 PRAHLAD - 10000 TRF TO A/C NO 110245 SINGH PARMAR 1 06/09/2011 DR THRU CHQ Cheque No. 850 27/08/2011 POONAM Cheque 200000 TRF TO A/C NO 110245 GROVER No.811545 1 07/09/2011 DR THRU CHQ Cheque No. 100000 27/08/2011 PAYOUT - 400000 SBI TRF 225669 CLEARING 09/09/2011 CAS CHQ XFER Cheque No. 6800 29/08/2011 MOEEN SHAH - 25000 TO 110263 KHAN 0030370882871 09/09/2011 CAS CHQ XFER Cheque No. 850 29/08/2011 SHYAM MANO- - 20000 TO 110263 HAR TIWARI 0030370882871 10/09/2011 CAS CHQ XFER Cheque No. 850 29/08/2011 BHUPENDRA - 50000 TO 110270 0030837909272 12/09/2011 CAS PRES CHQ Cheque 5950 29/08/2011 ARK IMAGES - 25000 No.225651 12/09/2011 CAS PRES CHQ Cheque No. 3400 30/08/2011 SUNITA DEVI Cheque 93500 110275 No.811515 14/09/2011 DR THRU CHQ Cheque No. 21250 30/08/2011 RAJENDRA Cheque 34850 SBI TRF 110227 No.811517

14/09/2011 DR THRU CHQ Cheque No. 3400 30/08/2011 VISHAL KR Cheque 3400 SBI TRF 110235 No.811512 15/09/2011 CAS PRES CHQ Cheque No. 3400 30/08/2011 VISHAL KR Cheque 5100 110259 No.811503 15/09/2011 CAS PRES CHQ Cheque No. 10200 30/08/2011 VISHAL KR Cheque 4250 110258 No.811513 15/09/2011 CAS PRES CHQ Cheque No. 1700 30/08/2011 RAJENDRA Cheque 19550 110261 No.811516 15/09/2011 CAS PRES CHQ Cheque No. 850 30/08/2011 MEENA DEVI Cheque 1700 110262 No.811501 15/09/2011 CAS PRES CHQ Cheque No. 3400 30/08/2011 RAJU KR Cheque 3400 110260 No.811523 15/09/2011 CAS PRES CHQ Cheque No. 1700 30/08/2011 SUDHA GUPTA Cheque 57,799 110256 No.811514 15/09/2011 CAS PRES CHQ Cheque No. 3400 01/09/2011 CHANDOORAM Cheque 3400 110255 No.811529 15/09/2011 CAS PRES CHQ Cheque No. 10200 01/09/2011 CHANDOORAM Cheque 1700 110253 No.811528 15/09/2011 CAS PRES CHQ Cheque No. 3400 01/09/2011 CHANDOORAM Cheque 3400 110254 No.811527 15/09/2011 CAS PRES CHQ Cheque No. 850 01/09/2011 CHANDOORAM Cheque 10200 110257 No.811526 15/09/2011 CAS PRES CHQ Cheque No. 850 01/09/2011 CHANDOORAM Cheque 850 110268 No.811530 15/09/2011 CAS CHQ XFER Cheque No. 400000 01/09/2011 BALESHWARD Cheque 3400 TO 225667 ASS No.811525 0053046704295 15/09/2011 DR THRU CHQ Cheque No. 30000 01/09/2011 DEVI JANKI Cheque 1700 SBI TRF 225668 SALES No.811520 15/09/2011 CAS CASH Cheque No. 15000 01/09/2011 HARSH PAN- Cheque 17000 Cheque PAID TO 125401 DEY No.811521 VIVE 26/09/2011 CAS PRES CHQ Cheque No. 850 03/09/2011 SHYAM MANO- - 25000 110269 HAR TIWARI 07/10/2011 CAS CHQ XFER Cheque No. 850 03/09/2011 VIMAL RAY - 30500 TO 110267 VERMA 0031055581387 31/10/2011 CAS CHQ XFER Cheque No. 5500 03/09/2011 SITARAM PRA- Cheque 1700 TO 413874 SAD SIHA No.811538 0031069177515 03/11/2011 DR THRU CHQ Cheque No. 5500 03/09/2011 NARESH KU- Cheque 1700 IDB CLG 818547 MAR SINGH No.811522 04/11/2011 DR THRU CHQ Cheque No. 5500 05/09/2011 GANGAKR Cheque 21250 SBI BT 818557 SINGH No.811539 05/11/2011 CAS PRES CHQ Cheque No. 11000 05/09/2011 ARJUN SAH Cheque 850 413799 No.811508 05/11/2011 CAS PRES CHQ Cheque No. 49500 05/09/2011 MANOJ K SAH Cheque 5100 413781 No.811506 05/11/2011 CAS PRES CHQ Cheque No. 11000 06/09/2011 ANIL KR ROY Cheque 3400 413788 No.811540 05/11/2011 CAS PRES CHQ Cheque No. 5500 06/09/2011 SANJAY KR Cheque 5950 413790 No.811509 05/11/2011 CAS PRES CHQ Cheque No. 5500 06/09/2011 GUNJAN Cheque 3400 818536 No.811518

08/11/2011 CAS CHQ XFER Cheque No. 27500 06/09/2011 GOPAL Cheque 850 TO 413785 SHARAN SINHA No.811505 0031649078334 09/11/2011 CAS PRES CHQ Cheque No. 5500 07/09/2011 MUNNI DEVI Cheque 15300 413793 No.811531 09/11/2011 CAS PRES CHQ Cheque No. 5500 07/09/2011 YUGAL KISHOR Cheque 11900 413802 PANDEY No.811532 09/11/2011 CAS PRES CHQ Cheque No. 5500 07/09/2011 YUGAL KISHOR Cheque 3400 413783 PANDEY No.811533 09/11/2011 CAS PRES CHQ Cheque No. 5500 07/09/2011 YUGAL KISHOR Cheque 5100 413786 PANDEY No.811534 09/11/2011 DR THRU CHQ Cheque No. 110000 07/09/2011 YUGAL KISHOR Cheque 1700 SBI 818567 PANDEY No.811537 10/11/2011 CAS PRES CHQ Cheque No. 16500 07/09/2011 YUGAL KISHOR Cheque 1700 413800 PANDEY No.811535 10/11/2011 CAS PRES CHQ Cheque No. 5500 07/09/2011 YUGAL KISHOR Cheque 850 413778 PANDEY No.811536 14/11/2011 DR THRU CHQ Cheque No. 5500 10/09/2011 PRAMOD SAHU Cheque 850 HDF CLG 818562 No.811507 14/11/2011 CAS CHQ XFER Cheque 11000 12/09/2011 - Cheque 50000 TO No.413789 No.811774 0020019296226 15/11/2011 CAS PRES CHQ Cheque 5500 13/09/2011 RAJESHWAR Cheque 300000 No.413787 CHAUDHARY No.815777 15/11/2011 CAS PRES CHQ Cheque 5500 13/09/2011 RAJENDER Cheque 250000 No.413803 No.815780 15/11/2011 DR THRU CHQ Cheque 5500 13/09/2011 RADHESHYAM Cheque 4250 BOI CLG No.413792 KR SINGH No.811541 16/11/2011 CAS PRES CHQ Cheque 5500 14/09/2011 SUNITA DEVI Cheque 106250 No.818531 No.815804 17/11/2011 CAS PRES CHQ Cheque 11000 14/09/2011 VISHAL KUMAR Cheque 31450 No.818526 No.815840 22/11/2011 CAS PRES CHQ Cheque 5500 14/09/2011 VISHAL KUMAR Cheque 35700 No.413801 No.815802 23/11/2011 CAS PRES CHQ Cheque 5500 14/09/2011 RAJENDRA SAO Cheque 54400 No.818552 No.815806 24/11/2011 CAS PRES CHQ Cheque 5500 14/09/2011 NIRANJAN Cheque 3400 No.818542 SINGH No.811542 24/11/2011 WDL TFR INB - 10000 14/09/2011 BIRMANI PRA- Cheque 10200 KRISHNA KU- SAD SINGH No.815767 MAR 24/11/2011 CAS CHQ XFER Cheque 250000 14/09/2011 LALTTA KU- Cheque 10200 TO No.125403 MARI No.815826 0031917195465 29/11/2011 WDL TFR INB - 2455 15/09/2011 RAMASHISH Cheque 7650 BIT WEB PRASAD No.815764 TECHNO 30/11/2011 CAS PRES CHQ Cheque 5500 15/09/2011 DINESH SAO Cheque 6800 No.818572 No.811504 21/12/2011 CAS PRES CHQ Cheque 44875 15/09/2011 SHYAM BABU Cheque 13600 No.413805 GUPTA No.815832

30/12/2011 WDL TFR INB - 7616 15/09/2011 SUDHA GUPTA Cheque 66300 GUNJAN KU- No.815803 MARI 03/01/2012 WDL TFR NEFT - 6005 16/09/2011 HARSH PAN- Cheque 33150 SITA SHARMA DEY No.815812 18/01/2012 DR THRU CHQ Cheque 100000 16/09/2011 DEVI JANKI Cheque 33150 SBI AK VIMAL No.413806 SALES No.815811 30/01/2012 WDL TFR NEFT - 18005 16/09/2011 AMR NATH TI- Cheque 10200 SUNEETA WARI No.815823 KHARKW 30/01/2012 WDL TFR INB - 5000 16/09/2011 MANI SHAN- Cheque 850 SHYAM MANO- KAR PD No.815824 HAR 30/01/2012 DR THRU CHQ Cheque 11000 16/09/2011 LAKSHMAN Cheque 850 SBI 30412686714 No.818568 CHOUDHARY No.815813 01/02/2012 DR THRU CHQ Cheque 5500 16/09/2011 BIJAY KUMAR Cheque 21250 IDB CLG No.818548 PANDEY No.815819 03/02/2012 DR THRU CHQ Cheque 5500 16/09/2011 BIJAY KUMAR Cheque 22950 PNB CLG No.818553 PANDEY No.815818 06/02/2012 WDL TFR INB - 5005 16/09/2011 BIJAY KUMAR Cheque 22100 NEFT LALIT PANDEY No.815835 AGARWAL 07/02/2012 CAS PRES CHQ Cheque 5500 17/09/2011 K R SONU Cheque 850 PNB P K No.818532 No.815815 YADAV 08/02/2012 CAS CHQ XFER Cheque 5500 17/09/2011 ARJUN SAH Cheque 850 TO No.818558 No.815846 0010223792237 17/02/2012 DR THRU CHQ Cheque 5500 17/09/2011 KADAR NATH Cheque 1700 UBI CLG No.818573 SINGH No.815836 17/02/2012 DR THRU CHQ Cheque 5500 17/09/2011 KADAR NATH Cheque 3400 HDF CLG No.818563 SINGH No.815837 21/02/2012 WDL TFR INB - 5000 17/09/2011 SITARAM PRA- Cheque 17000 NIRANKAR KU- SAD SIHA No.815825 MAR 21/02/2012 WDL TFR INB - 13925 17/09/2011 SHIVMANI PRA- Cheque 10200 NEFT VIJAY SAD No.815816 YADAV 23/02/2012 CAS PRES CHQ Cheque 11000 17/09/2011 NARESH KU- Cheque 46750 No.818527 MAR SINGH No.815814 24/02/2012 CAS PRES CHQ Cheque No. 2240 19/09/2011 BALESHWAR Cheque 6800 125404 DSS No.815768 01/03/2012 WDL TFR INB - 5000 19/09/2011 BALESHWAR Cheque 18700 NIRANKAR DSS No.815820 12/03/2012 WDL TFR INB - 20000 19/09/2011 YUGAL KISHOR Cheque 6800 JYOTI PRASAD PANDEY No.815757 14/03/2012 WDL TFR INB - 10005 20/09/2011 SATPAL GABA Cheque 250000 NEFT PRAVIR No.815779 RANJAN

19/03/2012 WDL TFR NEFT - 18005 20/09/2011 OM PRAKASH Cheque 11900 SUNEETA DAV No.815830 KHARKW 21/03/2012 WDL TFR INB - 18000 20/09/2011 VIBHA SINHA Cheque 3400 NEFT VIVEK No.815833 21/03/2012 WDL TFR INB - 1985 21/09/2011 HEERA DEVI Cheque 5100 NEFT VIVEK No.815849 22/03/2012 WDL TFR INB - 45000 21/09/2011 CHANDOORAM Cheque 10200 KC WADHWA No.815756 22/03/2012 WDL TFR INB - 30000 21/09/2011 SIWAN Cheque 21250 MOEEN SHAH No.815760 KHAN 22/03/2012 WDL TFR INB - 5000 21/09/2011 DIPIKA Cheque 100000 NIRANKAR RAMDES PATIL No.815778 29/03/2012 CAS PRES CHQ Cheque No. 6000 22/09/2011 MANJU Cheque 100000 125406 SHARMA No.815781 03/04/2012 WDL TFR INB - 800 22/09/2011 SUNIL KUMAR Cheque 25500 NEFT VIVEK SAW No.815761 KUMAR 07/04/2012 WDL TFR INB - 1800 22/09/2011 MINA DEVI Cheque 20400 NEFT VIVEK No.815766 KUMAR 14/05/2012 WDL TFR INB - 30000 22/09/2011 MEENA DEVI Cheque 2550 SURESH PAL No.815766 SINGH 14/05/2012 WDL TFR INB - 75000 22/09/2011 DEEPAK KU- Cheque 8500 REGISTRY VN MAR No.815773 SING 19/06/2012 WDL TFR INB - 15000 22/09/2011 ANITA DEVI Cheque 10200 SHYAM MANO- No.815762 HAR 03/07/2012 CAS PRES CHQ Cheque No. 11900 22/09/2011 BHAGAL U Cheque 5100 125405 SHAH No.815834 30/07/2012 WDL TFR INB - 40005 23/09/2011 ANIL K ROY Cheque 32300 NEFT LALIT No.815827 AGARWAL 26/12/2012 CAS PRES CHQ Cheque No. 1800 23/09/2011 RANJIT KR Cheque 850 PNB 413820 No.815839 TOTAL 2187876 23/09/2011 LAL BABU SAW Cheque 5100 No.815808 23/09/2011 SHYAM MANO- - 25000 HAR TIWARI 23/09/2011 ANIL AG- - 125000 GARWAL 24/09/2011 ARUN KR Cheque 3400 No.815828 26/09/2011 MAKESHWAR Cheque 34850 PD No.815829 26/09/2011 RAJIV RANJAN Cheque 4250 No.815770 26/09/2011 VIJAY THAKUR Cheque 24650 No.815758

26/09/2011 MD RAIWAN Cheque 4250 No.815759 26/09/2011 GOURAV - 150000 ANEJA 27/09/2011 SHYAM KU- Cheque 35,700 MARNIRALA No.815765 27/09/2011 SHANKAR KR Cheque 850 No.815847 27/09/2011 SHASHI Cheque 22100 BUSHAN PRA- No.815769 SAD SINGH 28/09/2011 REKHA DEVI Cheque 850 No.811543 01/10/2011 RAMSHISH Cheque 850 PRASAD No.815817 01/10/2011 KARAN GUPTA Cheque 6800 No.815848 01/10/2011 MADAN Cheque 850 MISHRA No.815848 03/10/2011 VIMAL RAY - 30500 VERMA 07/10/2011 MOEEN SHAH - 20000 KHAN 07/10/2011 SHYAM MANO- - 50000 HAR TIWARI 07/10/2011 KRISHNA KU- - 40000 MAR 08/10/2011 MUNNI DEVI Cheque No. 15300 815821 08/10/2011 KUNDAN KR Cheque No. 850 815822 08/10/2011 BACHCHU PRA- Cheque No. 2550 SAD SINGH 815772 10/10/2011 KRISHNA KU- - 50000 MAR 10/10/2011 SHYAM MANO- - 40000 HAR TIWARI 11/10/2011 PRAMOD SAHU Cheque No. 2550 815845 15/10/2011 SATPAL GABA Cheque No. 500000 809402 15/10/2011 PREM JEET KR Cheque No. 850 815838 17/10/2011 KHALID - 25000 24/10/2011 ALOK KUMAR Cheque No. 20000 815792 24/10/2011 MALATI DEVI Cheque No. 47600 815763 31/10/2011 RAMASHISH Cheque No. 5500 PRASAD 809440 01/11/2011 ORGANIC BIO- - 200000 FARM PVT LTD

03/11/2011 VIMAL RAY - 30500 VERMA 04/11/2011 PRAHLAD PAR- - 10000 MAR 07/11/2011 WEB LINK IN- - 10000 DIA PVT LTD 08/11/2011 KRISHNA KU- - 5000 MAR 09/11/2011 GUNJAN KU- Cheque No. 5500 MARI 809430 09/11/2011 GOPAL Cheque No. 5500 SHARMA SINHA 809408 10/11/2011 PALLAV KU- Cheque No. 850 MAR ARYA 815843 11/11/2011 SHYAM MANO- - 50000 HAR TIWARI 11/11/2011 PRAMOD SAHU Cheque No. 5500 809425 11/11/2011 ARUN KR Cheque No. 5500 809482 11/11/2011 RAMPATI DEVI Cheque No. 5500 809408 12/11/2011 SRINIWASH Cheque No. 5500 SINGH 809478 12/11/2011 KAMLESH KR Cheque No. 11000 809470 14/11/2011 ARJUN SAH Cheque No. 16500 809419 14/11/2011 RADHESHYAM Cheque No. 22000 KR SINGH 809498 14/11/2011 KADAR NATH Cheque No. 11000 SINGH 809406 15/11/2011 ORGANIC BIO- - 150000 FARM PVT LTD 16/11/2011 SURENDRA Cheque No. 11000 SINGH 809487 16/11/2011 BACHAN PD Cheque No. 5500 SINGH 809493 19/11/2011 RAJU KR Cheque No. 5500 809435 21/11/2011 PINTU KR Cheque No. 5500 809460 22/11/2011 KRISHNA KU- - 5000 MAR 25/11/2011 SANJIV KR Cheque No. 5500 SINGH 809450 28/11/2011 BHUPENDRA - 50000 03/12/2011 SHYAM MANO- - 25000 HAR TIWARI 03/12/2011 RAKESH KU- - 3850 MAR

05/12/2011 ASHISH KUMAR - 36000 PRAHLAD 05/12/2011 VAMAL RAY - 30500 VERMA 05/12/2011 BHUPENDRA - 50000 07/12/2011 BHUPENDRA - 50000 15/12/2011 DEVRAJ SINGH - 25000 KALSI 17/12/2011 PUSHPA DUA Cheque No. 5,25,000 818155 19/12/2011 KHALID - 50000 28/12/2011 ALL TIME COM- - 58800 PUTER 29/12/2011 A G INTERNA- Cheque No. 9500 TIONAL 818056 05/01/2012 SHYAM MANO- - 25000 HAR TIWARI 05/01/2012 SANTOSH - 100000 GOEL 06/01/2012 SUNITA KU- Cheque No. 850 MARI 815842 06/01/2012 SHYAM MANO- - 25000 HAR TIWARI 09/01/2012 MD JAHID Cheque No. 850 815844 11/01/2012 OP VERMA - 50000 11/01/2012 SUNIL KUMAR - 15000 SAXENA 12/01/2012 BHUPENDRA - 50000

12/01/2012 SHAILENDRA - 25000 KUMAR 23/01/2012 LALIT - 10000 AGAGRWAL 24/01/2012 SHYAM MANO- - 5000 HAR TIWARI 01/02/2012 ARJUN SAH Cheque No. 16500 809420 01/02/2012 MANOJ K SAH Cheque No. 5500 809415 01/02/2012 LALIT - 15000 AGAGRWAL 01/02/2012 SHYAM MANO- - 35000 HAR TIWARI 02/02/2012 RAMPATI DEVI Cheque No. 5500 809469 02/02/2012 ARUN KUMAR Cheque No. 5500 809483 02/02/2012 GOPAL Cheque No. 5500 SHARAN SINHA 809409

02/02/2012 RAMSHISH Cheque No. 5500 PRASAD 809441 02/02/2012 PRAVIR RAN- - 5000 JAN PREMES 03/02/2012 PRAVIR RAN- - 10000 JAN PREMES 03/02/2012 GUNJAN KU- Cheque No. 5500 MARI 809431 03/02/2012 VIMAL RAY - 30500 VERMA 03/02/2012 SHAILENDRA - 25000 KUMAR 03/02/2012 KADAR NATH Cheque No. 11000 SINGH 809406 04/02/2012 KAMLESH KU- Cheque No. 11000 MAR 809465 06/02/2012 PINTU KUMAR Cheque No. 5500 809461 06/02/2012 BACHAN PD Cheque No. 5500 SINGH 809494 06/02/2012 RADHESHYAM Cheque No. 22000 KR SINGH 809499 06/02/2012 LALIT - 10000 AGAGRWAL 07/02/2012 RAJU KUMAR Cheque No. 5500 809436 07/02/2012 SURENDRA Cheque No. 11000 SINGH 809489 09/02/2012 RAKESH KU- - 20000 MAR 10/02/2012 LALIT - 50000 AGAGRWAL 13/02/2012 SANJIV KR Cheque No. 5500 SINGH 809452 13/02/2012 SRINIWASH Cheque No. 5500 SINGH 809479 24/02/2012 PRAMOD SAHU Cheque No. 5500 809426 06/03/2012 LALIT - 50000 AGAGRWAL 06/03/2012 SAVITA - 49333 TANWAR 16/03/2012 AMAN SONI Cheque No. 13500 834401 24/05/2012 KHALID - 100000 28/05/2012 SHYAM MANO- - 5000 HAR TIWARI 26/06/2012 RAJEEV KU- - 15000 MAR SINHA 03/07/2012 VIMAL RAY - 39000 VERMA

03/07/2012 NATASHA - 3000 THAKUR 04/07/2012 RAJ RANJAN - 20000 11/07/2012 RAJEEV KU- - 24500 MAR SINHA 11/07/2012 DEEPAK KU- - 10000 MAR SINGH 12/07/2012 PRADEEP Cheque No. 6049 SINGH 818059 03/08/2012 KRISHNA KU- - 20000 MAR 21/08/2012 OP VERMA - 7000 31/08/2012 ARTI DEVI - 900 03/09/2012 SURESH JOSHI - 10000 06/09/2012 MANISH - 23000 07/09/2012 DINESH - 15000 07/09/2012 NIPENDER - 16000 NATH 10/09/2012 ANIL BHIKU - 100000 MNDHARE 12/09/2012 RAMA DEVI - 30000

12/09/2012 PRAVIR RAN- - 9904 JAN 14/09/2012 OP VERMA - 50000 14/09/2012 DEEPAK JOSHI - 10000 17/09/2012 KRISHNA KU- - 6000 MAR 19/09/2012 RAJEEV GUPTA - 2075 19/09/2012 OP VERMA - 25000 01/10/2012 RISHIKESH - 1850 04/10/2012 ARTI DEVI - 900 04/10/2012 MANISHA - 7500 07/10/2012 SHYAM MANO- - 10000 HAR TIWARI 11/10/2012 SURESH JOSHI - 70000

11/10/2012 RISHIKESH - 980 12/10/2012 SATPAL GABA - 50000 16/10/2012 SUNEETA - 18000 KHRKWAL 16/10/2012 ANAND VERMA - 10000 17/10/2012 RAMA DEVI - 30000

17/10/2012 BHUPENDRA - 25000 22/10/2012 OP VERMA - 30000 07/11/2012 BHUPENDRA - 20000 09/11/2012 ANAND VERMA - 50000 19/11/2012 BHUPENDRA - 20000 10/12/2012 ANURAG Cheque No. 25000 TANWAR 818071 11/12/2012 MRUTUNJAY Cheque No. 50000 KUMAR PATEL 818072 17/12/2012 VISHAV EN- - 60000 TERPRISES 19/12/2012 DEEPAK JOSHI - 25000 19/12/2012 VISHAV EN- - 15000 TERPRISES 02/01/2013 KULDEEP Cheque No. 1800 KAUR 812826 03/01/2013 ASHOK KUMAR - 27500 DANG 04/01/2013 ARTI DEVI - 900 04/01/2013 RIPIKA Cheque No. 25000 KHURANA 818076 07/01/2013 MOEEN SHAH - 15000 KHAN 08/01/2013 ANIL BHIKU Cheque No. 540 MNDHARE 812846 09/01/2013 KURIEN JOHN Cheque No. 289 812845 10/01/2013 VISHAV EN- - 75000 TERPRISES 12/01/2013 BALRAJ Cheque No. 5000 KHURANA 818080 15/01/2013 PRAHLAD - 5000 SINGH PARMAR 16/01/2013 DEEPAK JOSHI - 20000

17/01/2013 MEENU Cheque No. 11000 CHADHA 818075 17/01/2013 FARIDA Cheque No. 251 SHEHNAZ 818214 18/01/2013 TARUN JUNEJA - 15000 19/01/2013 MEENU - 25000 CHADHA 21/01/2013 GORAV ANEJA - 100000 21/01/2013 SATPAL GABA - 30000 22/01/2013 ANITA VIJAY Cheque No. 144 SHINDE 812841 22/01/2013 VIJAY YADAV - 10000

23/01/2013 MOEEN SHAH - 15000 KHAN 23/01/2013 BALRAJ - 3625 KHURANA 23/01/2013 SURESH Cheque No. 111 CHAMIKUTTY 812838 23/01/2013 BHUPENDRA - 10000

23/01/2013 ANITA KADIAN Cheque No. 2500 812833 23/01/2013 ANITA KADIAN Cheque No. 2500 812834 23/01/2013 TARUN JUNEJA - 15000 24/01/2013 GORAV ANEJA - 50000 30/01/2013 ANAND VERMA - 20000 30/01/2013 MANISHA - 8000 31/01/2013 KARNAIL - 1800 SINGH 01/02/2013 KULDEEP Cheque No. 1800 KAUR 812827 01/02/2013 ANIL BHIKU - 5000 MNDHARE 01/02/2013 VIJAY YADAV - 5000

01/02/2013 PRASHANT - 5000 01/02/2013 SANJEEV Cheque No. 136 CHAWLA 818226 02/02/2013 RANBIR SINGH Cheque No. 1419 818213 02/02/2013 BALVINDER Cheque No. 417 KAUR 818205 02/02/2013 SUNIL KUMAR Cheque No. 200 818210 02/02/2013 BHUSHAN - 2000 BANDOPANT 02/02/2013 ARTI DEVI Cheque No. 194 812844 06/02/2013 SHAKUNTALA Cheque No. 383 818208 06/02/2013 GORAV ANEJA - 25000 07/02/2013 RAKESH - 1500 08/02/2013 POOJA JUNEJA - 25000 08/02/2013 ALL TIME COM- - 5600 PUTER 08/02/2013 BHUPENDRA - 15000 11/02/2013 ARK IMAGES Cheque No. 25000 818085 TOTAL 8899834

GRAND 11087710 TOTAL

4.9. The above details broadly indicate that total payment of about Rs. 1 crore was made to individuals/entities by way of online transfers or cheques. Even if it is considered that the above sum of about Rs. 1 crore was in fact paid to the cus-tomers from whom deposits were collected, though no composite list of deposi-tors from whom money was collected by the Company has been provided, it still falls short of the Rs. 2.5 crore admittedly collected by the Company. Also, the Company has stated in its reply that advertisements in newspapers were given inviting claims from depositors/investors but no one has turned up till date. How-ever, no copy of such advertisement has been provided in its reply. Thus, the above details indicate that refund to the customers may not be complete and there is a strong possibility that there are customers who are yet to be paid.

4.10. In this connection, it is noted that the Jharkhand High Court had passed an Order on April 26, 2013 in WP (C) No. 1479 of 2013 - Dhanolty Developers Ltd. V. State of Jharkhand and Others, directing SEBI to inquire into the affairs of the Company in respect of the compliance of the respective statutory provisions. I note that the Company was directed to repay the amounts collected from the pub-lic by SEBI, after conducting an inquiry, pursuant to the interim direction of the High Court of Jharkhand, as early as July 30, 2014. However, complaints from investors continued to be received by SEBI even after the SEBI Interim Order dated July 30, 2014, and certain complaints were forwarded to the Company by SEBI vide letter dated March 23, 2015 (Refer para 5 of the Final Order dated November 04, 2015). It is to be noted that despite being afforded an opportunity of hearing on May 15, 2015, the Company and its directors/promoters did not appear for hearing. So, based on the written replies of the Noticees and other material available on record, the Final Order was passed on November 04, 2015 inter alia directing the Noticee Company and its directors/promoters to refund the money collected by it to the investors within three months.

Subsequently, the Company and Sanjay Walia filed Appeal No. 44 of 2016 before the Hon’ble SAT challenging the SEBI Final Order of November 04, 2015. In the said appeal, the Appellants therein, without prejudice to their contention that the activities of Dhanolty Developers did not constitute CIS, expressed their readiness and will-ingness to pay the balance amount to the investors in a time-bound manner. The Hon’ble SAT accepted the undertaking and directed the Appellants vide order dated October 06, 2017 to make a representation to SEBI within 4 weeks, and directed SEBI to dispose of the representation. The Hon’ble SAT also directed the Appellants to furnish SEBI, relevant copies of the balance sheets of the Com-pany and details of the total amount collected by the Company from the investors within 45 days. Also, the Appellants were directed by SAT to disclose to SEBI the list of assets owned by them and to give an undertaking to SEBI that they shall not sell the said assets without the prior approval of SEBI. Subsequently, the said Appellants filed Misc Application No. 13 of 2018 in Review Application No. 9 of 2017 in Misc Application No. 35 of 2016 and Appeal No. 44 of 2016 before SAT seeking modification of SAT’s earlier order, which was disposed vide order dated January 30, 2018. The Hon’ble SAT by way of the said order of January 30, 2018 modified its earlier direction to the Appellants dated October 06, 2017 to furnish relevant copies of balance sheets of the Company and details of the total amount collected by the Company to SEBI, by qualifying the same with the words “ as are available with the appellant”.

Thereafter, the Appellants forwarded a representa-tion dated February 12, 2018, as per the direction of SAT and made certain sub-missions. While forwarding the representation, the Appellants did not furnish any document as directed by SAT, and contended that no document pertaining to the account or assets of the Company could be obtained because of the sealing of its business premises by the district administration in 2013. The Appellants vaguely indicated details of two pieces of immovable property, and the details that were furnished were insufficient to identify the properties.

4.11. It was in the above background that the order dated March 29, 2019 got passed re-imposing the directions contained in SEBI Final Order dated November 04, 2015 against the Noticees. As on March 2019 itself, there was a lapse of over 3 years from the Final Order. Even though the Company undertook to repay the investors before the Hon’ble SAT, no amount was ever refunded. As there was continued non-compliance of the Orders by the Noticees, attachment proceedings in the matter were initiated in 2019. Against the said attachment the Company along with its Managing Director, Sanjay Walia approached the Hon’ble High Court of Jharkhand for relief.

4.12. It is a matter of record that even as on date, sufficient proof is not available to show that there has been a substantial repayment to the investors by the Noticees. The Bank statements produced before me during the present proceedings, relate to periods prior to SEBI’s interim order. There is no proof of any payment made to investors since the SEBI’s interim order or even the subsequent undertaking that was given to the Hon’ble SAT about the proposed refund. Hence, I am not inclined to relax the attachment, at this stage.

4.13. In view of the above, I, in exercise of the powers conferred upon me under sec-tions 11(1), 11B and 11(4) of the SEBI Act and regulation 65 of the SEBI(Collec-tive Investment Schemes) Regulations, 1999, hereby direct as follows:

(i) The Noticee Company and its directors/promoters namely, Sanjay Walia; Sid-dharth Walia; Anita Malik; Raksha Kumari; Shiv Pratap Singh; Shefali Walia and Pankaj Bakshi shall obtain a certificate from a peer reviewed Chartered Accountant to the effect that the amounts shown in paragraph 4.8 of this order along with other amounts if any, shown by the company to be traceable to any investor, has been repaid by the Company, and furnish the same to SEBI within a period of 45 days from the lifting of the nation-wide COVID-19 lock-down.

(ii) The Noticee Company and its directors/promoters shall cause to effect a newspaper publication in one widely circulated newspaper, in English and Hindi each, inviting complaints/claims from any investor in respect of the col-lective investment schemes (carried on in the current name of the noticee company or in any other name it was previously known) that are still outstanding, within a period of one month from the lifting of the nation-wide COVID-19 lockdown. The newspaper publication shall also contain an advisory, informing the investor to forward a copy of such complaints/claims, with the superscription “Com-plaints/Claims in the Matter of Dhanolty Developers Ltd..”, to SEBI at the following address:

The Regional Director,

Northern Regional Office,

Securities and Exchange Board of India,

5th Floor,

Bank of Baroda Building, 16, Sansad Marg,

New Delhi - 110001, Delhi

E-mail : sebinro@sebi.gov.in A period of one month from the date of the advertisement shall be provided to complainants for submitting any complaint as stated aforesaid. The Com-pany and its directors/promoters shall submit to SEBI, a Compliance Report along with information on complaints received and monies refunded, within a period of three months from the lifting of the nation-wide COVID-19 lock-down.

(iii) In the event the Company fails to carry out the directions at sub-paragraph (i) and (ii) above or the complaints received reveal that the Company has failed to pay all dues to investors, directions consequent to SEBI’s final order dated November 04, 2015 shall accordingly take effect and the Company and its di-rectors shall be jointly and severally liable to wind up its existing collective investment schemes and refund the money collected by it under the schemes with returns which are due to the investors as per the terms of offer within a period of three months from the due date of submission of the Compliance Report.

(iv) In the event that there are no complaints regarding failure to pay dues to in-vestors and upon receipt of the CA certificate and Compliance Report as di-rected in sub-paragraph nos. (i) and (ii) above, an order shall be passed vacating the directions in the SEBI Final Order dated November 04, 2015 as well as the attachment order initiated by the Recovery Division, within a fortnight from the date of receipt of such Compliance Report. However, the Noticee company, Dhanolty Developers Limited [PAN: AADCD8142Q] and Sanjay Walia [PAN: AAKPW0221H]; Siddharth Walia [PAN: AALPW3988]; Anita Malik [PAN: ASYPM1031D]; Raksha Kumari [PAN: AKZPK5102G]; Shiv Pratap Singh [PAN: AVPPS2160P]; Shefali Walia [PAN: AAOPW1693H] and Pankaj Bakshi [PAN: AEGPB9921H] shall be prohibited from accessing the securities market and restrained from buying, selling or dealing in the se-curities market for a period of 4 years with effect from the date of the aforesaid Compliance Report submitted to SEBI.

4.14. I note that the Hon’ble High Court of Jharkhand after hearing the Petitioners, disposed of WP (C) No. No. 4174 of 2019 vide its Order dated October 15, 2019 directing SEBI to dispose of the application submitted by the Company dated April 23, 2019 in accordance with law within a period of three weeks from the date of receipt of the order. In this respect, it is stated that upon receipt of a letter dated November 21, 2019 from the Company informing SEBI about the Hon’ble High Court’s Order dated October 15, 2019, necessary steps were taken to provide the Company a personal hearing on January 23, 2020, on which day the Company en-tered appearance through its Director, Sanjay Walia and its Advocates. Further to the said personal hearing, upon the request of the Company, time was granted to the Company to provide documents/information till February 26, 2020, within which the Company submitted its documents. While the contents of the submis-sions made by the Company were being analyzed, a nation-wide lockdown was imposed in view of the COVID-19 pandemic, which delayed the process of dis-posal of the subject application, and hence a delay of one month in the issuance of this order.

4.15. A copy of this Order shall be forwarded to - (i) all the recognised stock exchanges and registered depositories for necessary compliance with the above directions; and (ii) the Registrar, High Court of Jharkhand for information.

Date: April 24, 2020 G. MAHALINGAM Place: Mumbai WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA