Order in the matter of Pragya Dairies & Agro Limited

WTM/GM/IMD/76/2018–19 SECURITIES AND EXCHANGE BOARD OF INDIA INTERIM ORDER CUM SHOW CAUSE NOTICE UNDER SECTIONS 11(1), 11(4), 11B AND 11AA OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 READ WITH REGULATION 65 OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (COLLECTIVE INVESTMENT SCHEMES) REGULATIONS, 1999 AND REGULATION 11 OF THE SEBI (PROHIBITION OF FRAUDULENT AND UNFAIR TRADE PRACTICES RELATING TO SECURITIES MARKET) REGULATIONS, 2003. IN THE MATTER OF PRAGYA DAIRIES & AGRO LIMITED (PDAL) – COMPANY CIN PAN 1. PRAGYA DAIRIES & AGRO LIMITED U01400MP2010PLC023243 AAFCP3908E

DIRECTORS / PROMOTERS DIN PAN 2. PUNAM CHAND PATIDAR 02977863 BTUPP0108C 3. NANA LAL PATIDAR 02978194 AJWPP3490J 4. POOJA PATIDAR 02977813 AVBPP1293Q 5. DURGA PATIDAR 02977847 APJPP6921M 6. RAJESH JAIN 02978284 AEDPJ0277M 7. ANSAR AHMED 02336694 AFFPA4197L 8. ALOK SAHAI VIDYARTHI - NA 9. PRAMILA JAIN - NA

BACKGROUND –

1. Securities and Exchange Board of India (“SEBI”) received a complaint dated June 07, 2016 against Pragya Dairies & Agro Limited (hereinafter referred to as “PDAL” / “the company”) regarding illegal mobilization of money from public under different schemes.

2. PDAL is a company incorporated under the Companies Act, 1956 on March 18, 2010. The registered office address of PDAL is at ‘201, Mayank Villa, 123, Chikitsak Nagar, Indore, MP, 452001’.

3. As a matter of preliminary enquiry, in order to ascertain whether PDAL was involved in any fund raising activity by running schemes in the nature of ‘Collective Investment Schemes’ in terms of Section 11AA of the SEBI Act, 1992 (“SEBI Act”), letters dated October 03, 2016 and November 10, 2016 were issued to the company and its present and past directors, namely Punam Chand Patidar, Nana Lal Patidar, Pooja Patidar, Durga Patidar, Rajesh Jain and Ansar Ahmed, seeking the following information and documents: Order in the matter of Pragya Dairies & Agro Limited i. Memorandum and Articles of Association of the company. ii. Audited annual reports of the company since inception. iii. Income Tax returns of the company since inception. iv. Name, addresses and occupation of all the promoters/directors of the company including PAN details, Voter ID, Aadhar Card, contact details and addresses. v. Names and details of the Key Managerial Personnel of the company. vi. The following Information in respect of schemes launched for raising funds: a) A statement of mobilization and deployment of funds under various schemes duly certified by the Statutory Auditors of the company(s); b) Terms and conditions of the schemes launched by company; c) Structure of the Plans/Schemes; d) Details of the scheme(s) wise amount mobilized by company, along with the number of investors under the schemes; e) Assured/indicative/expected returns made in the scheme(s); f) Copies of offer documents, application form, pamphlets, brochures of the scheme(s) launched; g) Sample copies of the registration letter and allotment letter issued to the investors who subscribed to the scheme(s); h) Sample copies of the agreement letter / contract required to be entered into by investor / applicant under the scheme (s) i) Options available with the investor if he does not want to hold his investment till maturity; j) Whether any instrument is issued to the investors after receipt of fund; k) If such instruments are issued whether they are transferable; l) In case the ‘Scheme(s)’ pertains to booking / purchase of goods / properties / assets/ live stock / plantations / land/dairy / etc, the options available with investor if he does not want to possess the good/property after payment of initial amount; m) Details of any other similar scheme(s), if any, floated by the company or its group/ associates company; n) Confirm whether ‘Scheme(s)’ floated by the company falls under the SEBI (Collective Investment Schemes) Regulations, 1999. o) Address of all the branches operating in India. p) Was any broker / agents employed for said issue?

If yes, the name and amount of brokerage/ commission paid.

q) Details of any action initiated/ taken by any other authority ( including any court order ) against the company in respect of money raised from public

4. All the above-mentioned letters except those sent to Ansar Ahmed (a past director) returned undelivered. No response was received from either the company or any of the directors in respect of SEBI letters.

5. SEBI vide letters dated October 03, 2016 sought from the complainants various documents pertaining to fund mobilization activities of the company. In response to the same, the complainants provided details of the company’s schemes and copies of certificates issued by it, on November 30, 2016. SEBI had also sent letter dated August 18, 2017 to the Collector, Indore, with a request to share information / documents pertaining to examination or action, if any against the company. However, no response was received by SEBI in this regard.

6. In the meantime, SEBI had issued letter dated November 25, 2016 to the auditor of the company, viz. K. Motwani & Co., seeking various information pertaining to the company. The auditor, vide letter dated December 20, 2016 submitted inter alia that the company was engaged in trading of agricultural produces, seeds and allied items, contract farming, seed production and joint ventures so as to achieve its main object. The auditor further stated that it had already resigned as an auditor of the company. The auditor also provided the balance sheet of the company for FY 2011-12 and the Income Tax return pertaining to the said year. 7. SEBI also conducted a physical verification of the registered office address of the company at ‘201, Mayank Villa, 123, Chikitsak Nagar, Indore, MP-452001’ on August 23, 2017. However, it was found that the company was not operating at the said address.

OBSERVATIONS AND FINDINGS –

8. Upon an examination of the documents provided by the complainants, the following is observed – (a) From the copies of certificates issued by the company, it is observed that the same states - “ Certified that the person described in Schedule hereto is Registered Joint Venture of Consideration as shown in Schedule under Plan of Company, subject to the regular payment of Subscription(s) as mentioned in the said Schedule and also subject to “General Terms and Conditions” printed overleaf and terms and conditions as per Rule Book, as may be amended from time to time, and Company shall pay in Indian Currency at its Customer Service Center through Head Office, the amount due under this certificate in accordance with Terms of said Schedule to the person to whom the same in herein expressed to be payable, It is hereby declared that Schedule, “General Terms and Conditions” and other Terms and Conditions of Rule Book, as amended from time to time, shall be deemed to be part of this certificate.” Further, the copy of the certificate mentions inter alia the following details:

 Name & Address of Joint Venturer  Registration no. and date of commencement;  Plan No. Term  Cost of Cattle/Ghee/Product  Mode of Payment  Installment of Subscription payable  Expected sum Payable on Expiry of Term C.O.C. /Ghee/Product  Subscription Due Dates  Date of Last Payment  Date of Expiry of Term  Distributor’s Code  Expected sum payable.

(b) The copy of certificate also has ‘First Installment Receipt-cum-Acceptance Letter’, attached to it. (c) From the copies of documents containing the details of the Business Plans of the company, it is observed that the same contain the following Tables:

TABLE 1 (INSTALMENT PLAN – R60 – 60 MONTHS) TERM-5 YEARS NO. OF COST OF INSTALMENTS CATTLE/ GHEE COMPENSATIO CATTLE CATTLE/GHEE PAYMENT OR N ON (IN RS.) YEARLY HALF QTRLY. MONTHLY ESTIMATED ACCIDENTAL YEARLY AMOUNT DEATH (IN RS.) 5 10 20 60 (IN RS.) 10 60000 11500 5800 2950 1000 84000 90000 9 54000 10350 5220 2655 900 75600 81000 8 48000 9200 4640 2360 800 67200 72000 7 42000 8050 4060 2065 700 58800 63000 6 36000 6900 3480 1770 600 50400 54000 5 30000 5750 2900 1475 500 42000 45000 4 24000 4600 2320 1180 400 33600 36000 3 18000 3450 1740 885 300 25200 27000 2 12000 2300 1160 590 200 16800 18000 1 6000 1150 580 295 100 8400 9000

TABLE 2 (INSTALMENT PLAN – R40 – 40 MONTHS) TERM-3 YEARS 4 MONTHS NO. OF COST OF INSTALMENTS CATTLE / GHEE COMPENSATI CATTLE CATTLE/GHEE PAYMENT OR ON ON (IN RS.) YEARLY HALF QTRLY. MONTHLY ESTIMATED ACCIDENTAL YEARLY AMOUNT (IN RS.) DEATH 3.25 6.5 13 40 (IN RS.) 10 40000 11500 5800 2950 1000 45000 - 9 36000 10350 5220 2655 900 40500 - 8 32000 9200 4640 2360 800 36000 - 7 28000 8050 4060 2065 700 31500 - 6 24000 6900 3480 1770 600 27000 - 5 20000 5750 2900 1475 500 22500 - 4 16000 4600 2320 1180 400 18000 - 3 12000 3450 1740 885 300 13500 - 2 8000 2300 1160 590 200 9000 - 1 4000 1150 580 295 100 4500 - TABLE 3 (INSTALMENT PLAN – R90 – 90 MONTHS) TERM-7 YEARS 6 MONTHS NO. OF COST OF INSTALMENTS CATTLE / COMPENSATIO CATTLE CATTLE/GHEE GHEE N ON (IN RS.) YEARLY HALF QTRLY. MONTHLY PAYMENT OR ACCIDENTAL YEARLY ESTIMATED DEATH (IN RS.) 7.5 15 30 90 AMOUNT (IN RS.) 10 90000 11500 5800 2950 1000 150000 90000 9 81000 10350 5220 2655 900 135000 81000 8 72000 9200 4640 2360 800 120000 72000 7 63000 8050 4060 2065 700 105000 63000 6 54000 6900 3480 1770 600 90000 54000 5 45000 5750 2900 1475 500 75000 45000 4 36000 4600 2320 1180 400 60000 36000 3 27000 3450 1740 885 300 45000 27000 2 18000 2300 1160 590 200 30000 18000 1 9000 1150 580 295 100 15000 9000

TABLE 4 (INSTALMENT PLAN – R75 – 75 MONTHS) TERM-6 YEARS 3 MONTHS NO. OF COST OF INSTALMENTS CATTLE / COMPENSATIO CATTLE CATTLE/G GHEE N ON HEE YEARLY HALF QTRLY. MONTHLY PAYMENT OR ACCIDENTAL (IN RS.) YEARLY ESTIMATED DEATH (IN RS.) 7.5 15 30 90 AMOUNT (IN RS.) 10 75000 11500 5800 2950 1000 125000 90000 9 67500 10350 5220 2655 900 112500 81000 8 60000 9200 4640 2360 800 100000 72000 7 52500 8050 4060 2065 700 875000 63000 6 45000 6900 3480 1770 600 75000 54000 5 37500 5750 2900 1475 500 62500 45000 4 30000 4600 2320 1180 400 50000 36000 3 22500 3450 1740 885 300 37500 27000 2 15000 2300 1160 590 200 25000 18000 1 7500 1150 580 295 100 12500 9000

TABLE 5 (LUMP-SUM PLAN – F72 – 72 MONTHS) NO. OF COST OF CATTLE / GHEE PAYMENT COMPENSATION ON CATTLE CATTLE/GHEE OR ESTIMATED AMOUNT ACCIDENTAL DEATH (IN RS.) (IN RS.) (IN RS.) 1 5000 10000 5000 2 10000 20000 10000 3 15000 30000 15000 4 20000 40000 20000 5 25000 50000 25000 10 50000 100000 50000

TABLE 6 (LUMP-SUM PLAN – F132 – 132 MONTHS) NO. OF COST OF CATTLE/ GHEE PAYMENT OR COMPENSATION ON CATTLE CATTLE/GHEE ESTIMATED AMOUNT ACCIDENTAL DEATH (IN RS.) (IN RS.) (IN RS.) 1 5000 20000 5000 2 10000 40000 10000 3 15000 60000 15000 4 20000 80000 20000 5 25000 100000 25000 10 50000 200000 50000

TABLE 7 (LUMP-SUM PLAN – F102 – 102 MONTHS) NO. OF COST OF CATTLE / GHEE PAYMENT COMPENSATION ON CATTLE CATTLE/GHEE OR ESTIMATED AMOUNT ACCIDENTAL DEATH (IN RS.) (IN RS.) (IN RS.) 1 5000 15000 7500 2 10000 30000 15000 3 15000 45000 22500 4 20000 60000 30000 5 25000 75000 37500 6 50000 150000 75000 7 100000 300000 125000 (d) From the details contained in the copies of Certificates issued by the company which are available on record as well as from the details of various plans contained in the above Tables, it is noted that the company has collected funds from the public during the FY 2010-11, 2011-12, 2012-13 and 2013-14 under various ‘Schemes’ referred to as Business Plans, which are described in the Certificates as Joint Ventures pertaining to Cattle/Ghee. The said Business Plans have been offered with options of investing money in monthly/quarterly/half-yearly/yearly instalments or as lump-sum payment and the schemes have varied tenures, like 3 years 4 months, 5 years, 6 years 3 months, 7 years 6 months, 72 months, 102 months and 132 months. It is noted that the certificates issued by the company in respect of the investment under these plans mention ‘Expected Sum Payable on Expiry of Term C.O.C./Ghee’ (here C.O.C. appears to be denoting cost of cattle), which appears to be the maturity amount (inclusive of return on investment) payable to the investor at the end of the term.

9. Various documents including financial statements filed by the company with Registrar of Companies were accessed through the MCA21 portal. It was noted therefrom that the company had filed its balance sheet only up to the Financial Year (FY) 2011-12. The Balance Sheets of the company for FYs 2010-11 and 2011-12 indicate that the company had a current liability of Rs.6,86,87,882/- and Rs.12,98,27,007/- as on March 31, 2011 and March 31, 2012 respectively, on account of ‘Sundry Creditors under Joint Venture’. Further, the copies of Certificates issued by the company, which are available on record, pertain to FYs 2010-11, 2011-12, 2012-13 and 2013-14, which indicates that the company had raised funds even after FY 2011-12. Further, SEBI had also obtained bank statement of the company’s account (no. 910020014112887) maintained with Axis Bank, for the period from 24.04.2010 to 30.06.2017. From the same, it appeared that the company had collected funds during the FYs 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 and 2015-16. The said bank statement showed a total cash deposit of Rs.6,57,20,439/- in the bank account of the company during the said period.

10. From the above, it prima facie appears that the company has mobilized huge funds from public under its various schemes.

11. The details of the ‘Schemes’ offered by the company have to be considered in light of Section 11AA of the SEBI Act. The aforesaid Section 11AA, which provides for the conditions to determine whether a scheme or arrangement is a ‘Collective Investment Scheme’, reads as follows: “Collective investment scheme. (1) Any scheme or arrangement which satisfies the conditions referred to in subsection (2) or sub-section (2A) shall be a collective investment scheme: Provided that any pooling of funds under any scheme or arrangement, which is not registered with the Board or is not covered under sub-section (3), involving a corpus amount of one hundred crore rupees or more shall be deemed to be a collective investment scheme.

(2) Any scheme or arrangement made or offered by any person under which,- (i) the contributions, or payments made by the investors, by whatever name called, are pooled and utilized for the purposes of the scheme or arrangement; (ii) the contributions or payments are made to such scheme or arrangement by the investors with a view to receive profits, income, produce or property, whether movable or immovable from such scheme or arrangement; (iii) the property, contribution or investment forming part of scheme or arrangement, whether identifiable or not, is managed on behalf of the investors;

(iv) the investors do not have day to day control over the management and operation of the scheme or arrangement.”

12. In the context of the abovementioned Section 11AA of the SEBI Act, the ‘Scheme’ offered by the company is examined as under – (i) The contributions, or payments made by the investors, by whatever name called, are pooled and utilized for the purposes of the scheme or arrangement.

a. From the copies of Certificates issued by the company, which are available on record, it is noted that the company has collected funds from general public under its Schemes referred to as Business Plans, which are described as Joint Ventures pertaining to Cattle/Ghee. The amounts have been collected in instalments or as lump-sum amount. It is noted that under the said scheme, the returns offered to the investors are ‘Expected sum payable on Expiry of Term C.O.C./Ghee.

b. Further, from balance sheet of the company as on 31.03.2012, it is observed that the company had mobilized a sum of Rs.12,98,27,007/- as on March 31, 2012, in respect of the said joint ventures. From the various entries in the Balance Sheet, it is noted that the company has incurred expenses on purchase of land, agro products etc. Further, it is also noted from the submissions of the auditor of the company that the company was engaged in trading of agriculture products, seeds, allied items, contract farming, seed production and joint ventures to achieve its main object.

c. Upon a consideration of the aforementioned, I prima facie find that the contributions/payments made by the investors were pooled and utilized for the purposes of the ‘Schemes’ pertaining to Cattle/Ghee.

(ii) The contributions or payments are made to such scheme or arrangement by the investors with a view to receive profits, income, produce or property, whether movable or immovable from such scheme or arrangement.

a. On perusal of the certificates issued by the company as well as the Tables pertaining to its Business Plans, it appears that the investors had invested money in the scheme to get a return on his investment in the form of ‘Expected sum payable on Expiry of Term C.O.C./Ghee’. For example, on perusal of the copy of certificate issued to an investor, it is noted that under a plan of R-75 which is for a term of 6 yrs-3 months, the investor had invested Rs.37500/- in the form of monthly instalments of Rs.500 beginning on 29/11/2010 towards cost of cattle/ghee. As per the certificate, the term was to expire on 28.02.2017 upon which the investor was supposed to get Rs.62500/- as ‘Expected sum payable on Expiry of Term C.O.C./Ghee’. Thus, it is clear that the investors’ contributions or payments towards such scheme, as mentioned in above paragraphs, were made with an intention to earn profit/ income.

b. Upon a consideration of the aforementioned, I prima facie find that the contributions/payments made by the investors towards the ‘Schemes’ pertaining to Cattle/Ghee as offered by the company, was with a view to receive profit or income.

(iii) The property, contribution or investment forming part of scheme or arrangement, whether identifiable or not, is managed on behalf of the investors. (iv) The investors do not have day to day control over the management and operation of the scheme or arrangement.

a. Based on the scheme, payment plan and contents of certificate, it is observed that the investment solicited under the Schemes referred to as Business Plans, which are described as Joint Venture pertaining to cattle/ghee, were for a certain duration which indicates that the said investments were managed by company till the period of agreement period/maturity period mentioned in the certificate. Further, the complainants have alleged that the company is not refunding the amount invested by the investors. In view of the above, it is apparent that the control over the management and operation of activities pertaining to the schemes entirely vested with the company.

b. The aforesaid observations indicate that the property, contribution or investment forming part of the scheme are managed by the company on behalf of the investors and the investors do not have any say or control over the day-to-day management and operation of the scheme. c. Upon a consideration of the aforementioned, I prima facie find that the contributions / payments made by the investors towards the ‘Scheme’ pertaining to Cattle/Ghee are managed on behalf of such investors by the company. Further, I prima facie find that such investors do not have day–to–day control over the management and operation of the aforementioned ‘Scheme’.

13. In this context, it may be relevant to refer to the observations made by the Hon’ble Supreme Court of India in P.G.F. Limited & Ors. Vs. UOI & Anr. (AIR2013SC3702), wherein it observed: “... Sub-section (2) of Section 11AA, which defines a collective investment scheme disclose that it is not restricted to any particular commercial activity such as in a shop or any other commercial establishment or even agricultural operation or transportation or shipping or entertainment industry etc. The definition only seeks to ascertain and identify any scheme or arrangement, irrespective of the nature of business, which attracts investors to invest their funds at the instance of someone else who comes forward to promote such scheme or arrangement in any field and such scheme or arrangement provides for the various consequences to result therefrom.”

14. Upon a consideration of the preceding paragraphs and having regard to the observations of the Hon’ble Supreme Court, I prima facie find that the ‘Schemes’ referred to as Business Plans and described as Joint Venture pertaining to Cattle/Ghee as offered by the company satisfy the four requirements of a ‘Collective Investment Schemes’ as defined in Section 11AA of the SEBI Act, viz. – (i) There was pooling of contributions; (ii) Contributions were made with a view to receive assured realisable value; (iii) The contributions were managed on behalf of the investors, and (iv) The investors did not have day to day control over the management of the ‘Scheme’.

15. Section 12(1B) of the SEBI Act states that: “no person shall sponsor or cause to be sponsored or cause to be carried on a ‘collective investment scheme’ unless he obtains a certificate of registration from the Board in accordance with the regulations.” Further, Regulation 3 of the SEBI (Collective Investment Schemes) Regulations, 1999 (hereinafter referred to as “CIS Regulations, 1999”) also prohibits carrying on ‘Collective Investment Schemes’ activities without obtaining Certificate of Registration from SEBI.

16. I note that the company has not obtained any Certificate of Registration from SEBI under the CIS Regulations, 1999. I therefore, find that the ‘Schemes’ referred to as Business Plans and described as Joint Ventures pertaining to Cattle/Ghee have been carried out by the company in contravention of Section 12(1B) of the SEBI Act read with Regulation 3 of the CIS Regulations, 1999.

17. I also find that the fund mobilizing activity of the company through the ‘Schemes’ referred to as Business Plans and described as Joint Venture pertaining to Cattle/Ghee post September 2013 prima facie amounts to a fraudulent practice in terms of Regulation 4(2)(t) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (“PFUTP Regulations, 2003”).

18. As per information available on the MCA21 Portal, the details of the present and past directors / promoters of the company are as under: TABLE 8 – DETAILS OF THE PRESENT AND PAST DIRECTORS / PROMOTERS OF PDAL NAME OF THE PERSON DIN PAN 1 PUNAM CHAND PATIDAR 02977863 BTUPP0108C 2 NANA LAL PATIDAR 02978194 AJWPP3490J 3 POOJA PATIDAR 02977813 AVBPP1293Q 4 DURGA PATIDAR 02977847 APJPP6921M 5 RAJESH JAIN 02978284 AEDPJ0277M 6 ANSAR AHMED 02336694 AFFPA4197L 7 ALOK SAHAI VIDYARTHI - NA 8 PRAMILA JAIN - NA

19. I note that the persons at serial nos. 1–2 of Table 8 are the present Directors and continue to be responsible for the affairs of the company. As per Form No. DIR-12 filed by the company with RoC, the persons at sl. no. 3 and 4 who were appointed as directors on 18/03/2010 had resigned on 18/03/2010 itself. However, the Form 20B filed by the company for FY 2011-12 lists them as directors as on 29/09/2012. The same prima facie indicates that they were still directors during the period of fund mobilization. Further, as per Forms Nos. DIR-11 / DIR-12 filed with RoC, the person at Sl. No. 5 had joined as a director on 18/03/2010 and had resigned on 03/03/2011 whereas the person at sl. No. 6 had joined as director on 07/08/2014 and had resigned on 13/08/2015, which indicates that they were directors of the company during the period of fund mobilization. Further, the persons at sl. nos. 1, 2, 3, 4, 5, 7, & 8 are also the promoters of the company. As directors and promoters of the company, the aforementioned entities are liable for the alleged contraventions by the company.

20. As per the Balance Sheets of the company available with SEBI, the company has prima facie mobilized an amount of Rs.12,98,27,007/- under the ‘Scheme’ referred to as Business Plans and described as Joint Venture pertaining to Cattle/Ghee, as on March 31, 2012. However, since the company has collected funds even after the said financial year, the exact amount of funds mobilized by the company till date is yet to be ascertained. 21. Protecting the interests of investors is the first and foremost mandate for SEBI and therefore, steps have to be taken to ensure that the company does not collect further funds under its ‘Schemes’ or any other Schemes and no investors are defrauded. Further, in order to safeguard the assets/property acquired by the company and its directors /promoters using the funds collected from the investing public until full facts and materials are brought on record and a final decision is taken in the matter, it is incumbent on SEBI to take preventive action by way of an immediate measure.

22. In light of the aforesaid and as the company has failed to submit the details/information as sought by SEBI, I find no other alternative but to take recourse through an interim order against the company and its directors /promoters for preventing them from further carrying on with its existing fund mobilizing activity by launching ‘Collective Investment Scheme’ without registration from SEBI in accordance with law.

ORDER – 23. In view of the foregoing, I, in exercise of the powers conferred upon me under Section 19 read with Sections 11(1), 11(4), 11B and 11AA of the SEBI Act read with Regulation 65 of the CIS Regulations, 1999 and Regulation 11 of PFUTP Regulations, 2003, hereby direct PDAL and its directors / promoters, viz. Punam Chand Patidar, Nana Lal Patidar, Pooja Patidar, Durga Patidar, Rajesh Jain, Ansar Ahmed, Alok Sahai Vidyarthi and Pramila Jain,– (i) Not to collect any fresh money from investors under its existing Scheme; (ii) Not to launch any new scheme/plan or float any new companies/firm to raise fresh moneys; (iii) Not to dispose of any of the properties or alienate the assets obtained directly or indirectly through the money raised by PDAL under its existing Scheme; (iv) Not to divert any funds raised from public at large, kept in bank account(s) and/or in the custody of PDAL; (v) To immediately submit a full inventory of the assets owned by PDAL out of the amounts collected from the investors under its existing Scheme; (vi) To furnish all the information sought by SEBI, including – a. Copies of all the relevant documents issued by the company viz. Application Form, Agreement, Certificate of Allocation, Allocation Letter, etc.; b. Scheme–wise list of investors and their contact numbers and addresses, including –  List of investors to whom land has been allotted and has got registered and  List of investors who have been refunded. c. Details of amount mobilized and refunded till date; d. Details of amount refunded till date along with the details of mode of payment, duly certified by a Chartered Accountant;

24. The above directions shall take effect immediately and shall be in force until further orders.

25. The preliminary findings contained in paragraphs 12 to 22 of this Order are made on the basis of the information obtained from MCA21 Portal and other relevant material on record. PDAL and the above-named directors / promoters (collectively referred to as “Noticees”) are hereby called upon to show cause as to why suitable directions/prohibitions under Sections 11, 11(4), 11B and 11AA of the SEBI Act read with Regulation 65 of the CIS Regulations, 1999 and Regulation 11 of the PFUTP Regulations, 2003, should not be issued/imposed, including the following directions, viz. – i. PDAL and its directors and promoters, viz. Punam Chand Patidar, Nana Lal Patidar, Pooja Patidar, Durga Patidar, Rajesh Jain, Ansar Ahmed, Alok Sahai Vidyarthi and Pramila Jain, to wind up the existing Collective Investment Scheme and to refund the money collected under the Scheme with returns which are due to investors as per the terms of offer of the said Scheme, supported by a Winding up and Repayment Report (in accordance with the CIS Regulations, 1999) to the satisfaction of SEBI (to be submitted to SEBI within 7 days of completion of the refund); and ii. The Noticees to be restrained/prohibited from accessing the securities market and buying, selling or otherwise dealing in securities in any manner whatsoever, directly or indirectly, for a period of four years from the date of effecting the refund.

26. The Noticees may, within 21 days from the date of receipt of this Interim Order–cum–Show Cause Notice, file their respective reply, if any, to this Order and may also indicate whether they desire to avail themselves an opportunity of personal hearing on a date and time to be fixed on a specific request made in that regard.

27. This Order is without prejudice to any other action that SEBI may initiate under securities laws, as deemed appropriate.

28. A copy of this Order shall also be forwarded to the Local Police/State Government for their information.

Place: Mumbai G. MAHALINGAM Date: November 09, 2018 WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA