Order in the matter of Moryo Industries Limited

SEBI/WTM/MPB/EFD-1-DRA-IV/32 /2017 BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA CORAM: MADHABI PURI BUCH, WHOLE TIME MEMBER ORDER Under Sections 11, 11(4) and 11B of the Securities and Exchange Board of India Act, 1992 in the matter of Moryo Industries Limited.

1. Securities and Exchange Board of India (“SEBI”) conducted an examination into the dealings in the scrip of Moryo Industries Limited (“Moryo” or the Company) on BSE Limited (“BSE”) during the period from May 22, 2013 to January 30, 2015 as there was huge rise in the traded volume and price of the scrip.

2. Upon preliminary inquiry, SEBI prima facie observed the following:  MIL made preferential allotment of its 63,50,000 shares at the price of Rs 25/- per share to 42 persons (including joint allottees) on November 09, 2012. Subsequently, each share of Moryo was split into two shares on January 15, 2013;  After the release of compulsory lock-in period, the price and volume of the scrip of MIL increased substantially on account of trading amongst the Preferential Allottees and the Moryo Group entities (i.e. entities related/connected to Moryo and/or were instrumental in the price rise and/or contributed volume in the scrip of Moryo) and most of the Preferential Allottees were provided exit at a high price by the Moryo Group entities;  By virtue of the same, it was alleged that Moryo and persons in charge of its affairs created preferential allotment of shares as a mode to provide fictitious long term capital gains ("LTCG") to its Preferential Allottees so as to convert their unaccounted income into accounted one; In the process, Preferential Allottees and the Moryo Group entities artificially increased the volume and price of the scrip and misused securities market system for making illegal gains and to convert ill-gotten gains into genuine one to avail LTCG benefit.

3. As the aforesaid activities of Moryo and its Promoter/Directors, Preferential Allottees, Moryo Group entities were prima facie in violation of SEBI Act, 1992 (“SEBI Act”) and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Order in the matter of Moryo Industries Limited

Regulations, 2003 (“PFUTP Regulations”) SEBI passed an Ad interim ex-parte order dated December 04, 2014 (“interim order”) and restrained the following entities including Moryo and its Promoters and Directors from accessing the securities market and further prohibited them from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever, till further directions. Sl. No.* Name PAN 1 MORYO INDUSTRIES LIMITED AACCM5166G Promoters of Moryo Industries Ltd 2 MOHAN JAIN AABPJ7629P 3 DEEPIKA MOHAN JAIN AABPJ7615H Directors of Moryo Industries Ltd 4 MANOHARLAL SARAF AAIPS7577C 5 GEETA MANOHARLAL SARAF ANMPS6842B 6 DEEPTI LALWANI AFUPL5641K 7 SHASHIKUMAR JATWAL ALMPJ4216E Preferential Allottees 8 VIVEK KUMAR KEJRIWAL ACXPV7536R 9 VIVEK KUMAR KEJRIWAL HUF AAEHV3659N 10 NARESH S CHANDAN AAKPC5639D 11 CHETNA NARESH CHANDAN AADPC1398N 12 KAVITA SHREEEAM SINGHI AMCPS1116K 13 MANISH JAGDISH SARAF AUHPS6394N 14 SANJAY ANCHALIYA AABPA2723R 15 SUCHEK SURESH ANCHALIYA AJNPA8807F 16 NIKUNJ ARVIND DESAI ACJPD9611P 17 VEENU JAIN HUF AAAHJ0626D 18 KAMAL JAJOO ABVPJ3150A 19 BHIKHABHAI H PRAJPATI HUF AAGHB7871J 20 JAGDISH B PRAJAPATI HUF AAEHJ9503P 21 AMARDEEP KADAM ALTPK8993J 22 RAJEEV KUMAR AGARWAL ACPPA7567H 23 MAHA DEVI AGARWAL ABMPA2745F 24 ANAND KUMAR AGARWAL ACMPA4421D 25 SANJEEV KUMAR AGARWAL ABMPA2770N ANILKUMAR AGGRAWAL ACSPA5647B 26 NEELI AGGRAWAL AAJPA1839J Order in the matter of Moryo Industries Limited

Sl. No.* Name PAN 27 PRITI A MEHTA ALAPM5609E 28 SHIVSHANKER C JOSHI AAEPJ8684M GEETABEN S. JOSHI AAJPJ8345A JITENDRA DHIRAJLAL VORA AABPV8208Q VARUN YOGESH VORA AFBPV3801J 29 MANTHAN MAHISH VORA AIAPV6436F 30 NARESH B KHATAR AGYPK5408L 31 VIJAY HASMUKRAI BHAYANI AAEPB8868P 32 SACHIN GOKULDAS MEHTA AACPM6569J CHITAN NARENDRA SHAH AKIPS1272J 33 DIPANI CHINTAN SHAH AMVPS8322G 34 JAYESH POATLAL SHAN AAGPS4118M KALPANA JAYESH SHAH ABDPS8106P 35 JUGAL KISHRE CHIRANIA-HUF AABHJ8023M 36 SANJEEV CHIRANIA HUF AARHS4527D 37 SUDHEER CHIRANIA HUF AARHS4528N DEVANG BHUPENDRA SHAH AADPS1211L 38 DEVAL DEVANG SHAH 39 JAIDEV GUPTA HUF AAFHJ5373N 40 VINOD KUMAR GUPTA HUF AAAHV5024M 41 SUMIT GUPTA AABPG7826K 42 DEEPAK SARAF HUF AAFHD0142R 43 AMIT JALAN AFDPJ7855G 44 SUMIT JALAN AFDPJ7853A 45 YASH JALAN AHIPJ7654E 46 DEVENDRA JALAN ADBPJ2163K 47 PRATAP UTTAM PUROHIT AFZPP9994A 48 MANISH S SHAH HUF AAFHM0782E NIRAV ANIL SHAH AAIPS1195G 49 ANISHA NIRAV SHAH MORYO GROUP 50 GARTH MERCANTILE PRIVATE LIMITED. AAECG9026D ROMY REALTY PRIVATE LIMITED/ NIDHI 51 DHANUKA AADCR6342Q 52 SURFACE FINANCE PVT. LTD AABCS1202L 53 OLYMPIA MULTITRADING PRIVATE LIMITED. AABCO7262J 54 ISAIRIS TRADING PRIVATE LIMITED. AADCI0407P 55 ANAND KAMALNAYAN PANDIT ADMPP1798B Order in the matter of Moryo Industries Limited

Sl. No.* Name PAN 56 SAVITA SONAVANE/ RUPAK DEVELOPERS PVT. LTD AADCR6341P SAMSKARA SALES AGENCY PRIVATE 57 LIMITED AATCS7717A 58 SHIVKUMAR KAUSHIK AAGPK7011H 59 GULMOHAR DEALCOM PRIVATE LIMITED AADCG9091K 60 TUSHAR R RANE AJCPR9314H 61 SAURABH SURENDRA JADHAV ANGPJ6430Q 62 TISHA TUSHAR RANE AHRPK8922D 63 SONI KRUPA SANJAY BVSPS9740P 64 MANGESH MADHUKAR DHOTRE AJPPD8297E 65 DEEPAK SURYAKANT CHAVAN AJAPC0258P 66 TOPWELL PROPERTIES PRIVATE LIMITED AADCT8403C SANJAY JETHALAL SONI (HUF) SANJAY 67 JETHALAL SONI (HUF) AAWHS0331J 68 ESAAR INDIA LTD AABCE0478J 69 SURYAKANT CHANPUR ANDPC7557J HELPFUL INVESTMENT ADVISORY 70 PRIVATE LIMITED AACCH4303G 71 WAKIL RAJBHAR AOSPR9100E 72 TANU GIRIRAJ AGARWAL AADPA7003J 73 SADAKIRTI DEALER PVT. LTD AANCS5873M 74 KAMALAKSHI FINANCE CORPORATION LIMITED AAACK1804B DHARTI DEVELOPERS AND 75 CONSTRUCTIONS PVT. LTD AADCD5959M 76 GANESH EKNATH CHANDANSHIVE ARWPC4266D 77 GIRISH RAJKUMAR GOEL BDLPG2634K 78 SAPNA RAMDAS JATWAL APNPJ7211C 79 KRUPALI MADHUKAR DHOTRE BIQPD4268L 80 GOODPOINT IMPEX PRIVATE LIMITED AAFCG0606G SHIVSATHI MERCANTILE PRIVATE 81 LIMITED AASCS6284R 82 SHALLOT DEALTRADE PRIVATE LIMITED AARCS4827R 83 VASUDEV B PANCHAL ASIPP8140N 84 LIMESTONE PROPERTIES PVT. LTD AACCL0133G 85 VICTORY SALES PVT. LTD AAACV7299K Order in the matter of Moryo Industries Limited

Sl. No.* Name PAN 86 SAMPADA CHEMICALS LTD AACCS7980C 87 SAGAR GIRISH BHATT ATYPB5376M 88 MAHASVIN TRADING PVT. LTD AAJCM1338F 89 KRUPA SANJAY SONI BVSPS9740P 90 AMUL GAGABHAI DESAI AHDPD3526G 91 GIRIRAJ KISHOR AGARWAL AABPA4928N (*Total 98 entities as entities at Sl.no. 26, 28, 29, 33, 34, 38 and 49 are joint allottees and entities at Sl. No. 63 and 89 are same)

4. The directions issued against the following entities were revoked vide SEBI’s Order dated August 22, 2016: Sl. No Name PAN Erstwhile Promoters 1. AABPJ7629P Mohan Jain 2. AABPJ7615H Deepika Mohan Jain Moryo Group 3. Vasudev B Panchal ASIPP8140N 4. Victory Sales Pvt. Ltd AAACV7299K 5. Sampada Chemicals Ltd AACCS7980C 6. Sagar Girish Bhatt ATYPB5376M 7. Krupa Sanjay Soni BVSPS9740P 8. Amul Gagabhai Desai AHDPD3526G 9. Sanjay Jethalal Soni (HUF) AAWHS0331J 10. Shivkumar Kaushik* AAGPK7011H (* Mr. Shivkumar Kaushik expired on September 15, 2015, hence, proceedings against him were abated and revoked the interim Order against him)

5. The directions against the remaining 88 entities were confirmed vide Orders dated March 18, 2016 and August 22, 2016.

6. Pursuant to the interim order, SEBI conducted a detailed investigation of the entire scheme employed in the instant matter, connection amongst the debarred entities, funds Order in the matter of Moryo Industries Limited used for the price manipulation of the scrip of Moryo, etc., so as to ascertain the violation of securities laws.

7. Upon completion of investigation by SEBI, it is noted that investigation did not find any adverse evidence/findings against 85 entities in respect of their role in price manipulation in the scrip of Moryo warranting continuation of action under Sections 11B and 11(4) of the SEBI Act. Hence, violation of provisions of SEBI Act and PFUTP Regulations, etc., were not observed in respect of the following entities.

Sl. No.** Name Of The Entity PAN 1. Deepti Lalwani AFUPL5641K 2. Shashikumar Jatwal ALMPJ4216E 3. Vivek Kumar Kejriwal ACXPV7536R 4. Vivek Kumar Kejriwal HUF AAEHV3659N 5. Naresh S Chandan AAKPC5639D 6. Chetna Naresh Chandan AADPC1398N 7. Kavita Shreeeam Singhi AMCPS1116K 8. Manish Jagdish Saraf AUHPS6394N 9. Sanjay Anchaliya AABPA2723R 10. Suchek Suresh Anchaliya AJNPA8807F 11. Nikunj Arvind Desai ACJPD9611P 12. Veenu Jain HUF AAAHJ0626D 13. Kamal Jajoo ABVPJ3150A 14. Bhikhabhai H Prajpati HUF AAGHB7871J 15. Jagdish B Prajapati HUF AAEHJ9503P 16. Amardeep Kadam ALTPK8993J Order in the matter of Moryo Industries Limited

17. Rajeev Kumar Agarwal ACPPA7567H 18. Maha Devi Agarwal ABMPA2745F 19. Anand Kumar Agarwal ACMPA4421D 20. Sanjeev Kumar Agarwal ABMPA2770N Anilkumar Aggrawal ACSPA5647B 21. Neeli Aggrawal AAJPA1839J 22. Priti A Mehta ALAPM5609E Shivshanker C Joshi AAEPJ8684M 23. Geetaben S. Joshi AAJPJ8345A Jitendra Dhirajlal Vora AABPV8208Q Varun Yogesh Vora AFBPV3801J 24. Manthan Mahish Vora AIAPV6436F 25. Naresh B Khatar AGYPK5408L 26. Vijay Hasmukrai Bhayani AAEPB8868P 27. Sachin Gokuldas Mehta AACPM6569J Chitan Narendra Shah AKIPS1272J 28. Dipani Chintan Shah AMVPS8322G Jayesh Poatlal Shan AAGPS4118M 29. Kalpana Jayesh Shah ABDPS8106P 30. Jugal Kishre Chirania-HUF AABHJ8023M 31. Sanjeev Chirania HUF AARHS4527D 32. Sudheer Chirania HUF AARHS4528N Devang Bhupendra Shah AADPS1211L 33. Deval Devang Shah 34. Jaidev Gupta HUF AAFHJ5373N 35. Vinod Kumar Gupta HUF AAAHV5024M 36. Sumit Gupta AABPG7826K

Order in the matter of Moryo Industries Limited

37. Deepak Saraf HUF AAFHD0142R 38. Amit Jalan AFDPJ7855G 39. Sumit Jalan AFDPJ7853A 40. Yash Jalan AHIPJ7654E 41. Devendra Jalan ADBPJ2163K 42. Pratap Uttam Purohit AFZPP9994A 43. Manish S Shah HUF AAFHM0782E Nirav Anil Shah AAIPS1195G 44. Anisha Nirav Shah 45. Garth Mercantile Private Limited. AAECG9026D Romy Realty Private Limited/ Nidhi 46. Dhanuka AADCR6342Q 47. Surface Finance Pvt. Ltd AABCS1202L 48. Olympia Multitrading Private Limited. AABCO7262J 49. Isairis Trading Private Limited. AADCI0407P 50. Anand Kamalnayan Pandit ADMPP1798B Savita Sonavane/ Rupak Developers 51. Pvt. Ltd AADCR6341P 52. Samskara Sales Agency Private Limited AATCS7717A 53. Gulmohar Dealcom Private Limited AADCG9091K 54. Tushar R Rane AJCPR9314H 55. Saurabh Surendra Jadhav ANGPJ6430Q 56. Tisha Tushar Rane AHRPK8922D 57. Mangesh Madhukar Dhotre AJPPD8297E 58. Deepak Suryakant Chavan AJAPC0258P

Order in the matter of Moryo Industries Limited

59. Topwell Properties Private Limited AADCT8403C 60. Esaar India Ltd AABCE0478J 61. Suryakant Chanpur ANDPC7557J Helpful Investment Advisory Private 62. Limited AACCH4303G 63. Wakil Rajbhar AOSPR9100E 64. Tanu Giriraj Agarwal AADPA7003J 65. Sadakirti Dealer Pvt. Ltd AANCS5873M Kamalakshi Finance Corporation 66. Limited AAACK1804B Dharti Developers And Constructions 67. Pvt. Ltd AADCD5959M 68. Ganesh Eknath Chandanshive ARWPC4266D 69. Girish Rajkumar Goel BDLPG2634K 70. Sapna Ramdas Jatwal APNPJ7211C 71. Krupali Madhukar Dhotre BIQPD4268L 72. Goodpoint Impex Private Limited AAFCG0606G 73. Shivsathi Mercantile Private Limited AASCS6284R 74. Shallot Dealtrade Private Limited AARCS4827R 75. Limestone Properties Pvt. Ltd AACCL0133G 76. Mahasvin Trading Pvt. Ltd AAJCM1338F 77. Giriraj Kishor Agarwal AABPA4928N (**Total 85 entities including joint allottees mentioned at Sl. Nos.21,23,24,28,29 and 33.) 8. Considering the fact that there are no adverse findings against the aforementioned entities with respect to their role in the price manipulation in the scrip of Moryo warranting continuation of action under Sections 11B and 11(4) of the SEBI Act, I am of the Order in the matter of Moryo Industries Limited considered view that the directions issued against them vide interim order dated December 04, 2014 which were confirmed vide Orders dated March 18, 2016 and August 22, 2016, are liable to be revoked.

9. In view of the foregoing, I, in exercise of the powers conferred upon me under Section 19 of the Securities and Exchange Board of India Act, 1992 read with Sections 11, 11(4) and 11B of the SEBI Act, hereby revoke the Confirmatory Orders dated March 18, 2016 and August 22, 2016 qua aforesaid 85 entities (including joint allottees tabulated at paragraph 7 above) with immediate effect.

10. The revocation of the directions issued vide the abovementioned orders (at paragraph 9) is only in respect of the entities mentioned at paragraph 7 of this order in the matter of Moryo Industries Limited. As regards remaining 3 entities in the scrip of Moryo, violations under SEBI Act, SCRA, PFUTP Regulations, etc., were observed and SEBI shall continue its proceedings against them. Hence, the directions issued vide Order dated August 22, 2016 against remaining 3 entities viz., Moryo Industries Limited (PAN- AACCM5166G), Manoharlal Saraf (PAN- AAIPS7577C) and Geeta Manoharlal Saraf (PAN- ANMPS6842B) shall continue.

11. A copy of this Order shall be served on the Stock Exchanges and Depositories, for necessary action.

DATE: SEPTEMBER 21, 2017 MADHABI PURI BUCH PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA

Order in the matter of Moryo Industries Limited