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2021 (11) TMI 122 - KARNATAKA HIGH COURTCollective Investment Schemes - Petitioners seeking quashing of the show cause notices issued to the petitioners calling upon them to adduce evidence and clarifications in support of their contentions - HELD THAT:- SAT condemned the conduct of the petitioners on several grounds. It was observed that the petitioners have made misleading statements in the information memorandum only to lure the small time investors to remain invested in the Scheme and the petitioners continue to operate its Collective Investment Schemes even after the SAT passing the interim order. The petitioners successfully dragged the matter regarding the submission of the information memorandum from 2006 to 2014. The contention that Annexures-H and H1 are the show cause notices deserve no merit on the apparent reading of those documents. After receiving Annexures-H and H1, the petitioners approached this Court in the above matter and by virtue of the interim order passed in this case, they have dragged the matter for another seven years. From the above facts, it becomes clear that the petitioners with an intention to avoid hearing of the matter before WTM have indulged in these proceedings. If according to the petitioners, the notice of information memorandum to the investors under RPAD is not required, it is open to them to appear before WTM and convince on the said aspects. If their contention is not accepted, they can avail whatever remedy is open to them. Since no right of the petitioners is affected by the notices Annexures-H and H1, no interference of this Court is required in the matter invoking Articles 226 and 227 of the Constitution of India. In the light of the above discussions, this Court does not find it necessary to refer to several judgments relied upon by both side. The contention that WTM has made up its mind to pass an order against the petitioners is a prematured contention.
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