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2014 (12) TMI 1288 - Board - Companies LawSchemes without obtaining registration from SEBI - Collective Investment Schemes - Whether MVL is operating a CIS without obtaining registration from SEBI? - Held that:- MVL has uniformly priced the units in 'IBC project', situated at different locations/floors. This gives an inference that the units are being sold at a fixed price, which is generally not the practice in a real estate transaction. As refer to a complaint received by SEBI on May 16, 2014, wherein it has been alleged that since the year 2012, MVL has regularly defaulted on payment of agreed assured return. In another investor complaint received by SEBI on August 31, 2014, the complainant alleged that MVL is not giving the assured returns, assured rental income to its customers and that MVL has advised for cancellation of the 'buyers' agreement' and 'assured returns agreement' pertaining to IBC Project. A copy of these complaints have been forwarded by SEBI to MVL. The contents of these complaints further strengthens the observations made above that the IBC Project is not purely a real estate transaction. In view of the foregoing, the plans/schemes of MVL is in the nature of a CIS as all the four conditions specified under Section 11AA (2) of the SEBI Act are satisfied. As find that the Company is engaged in the fund mobilising activity from the public by floating/sponsoring/launching 'collective investment schemes' as defined in Section 11AA of the SEBI Act. Therefore, have no hesitation in holding that MVL and its directors, viz., Mr. Prem Adip Rishi, Mr. Praveen Kumar, Mr. Rakesh Gupta, Mr. Vinod Malik, Mr. Vinod Kumar Khurana, Mr. Vijay Kumar Sood and Ms. Kalpana Gupta are engaged in the fund mobilising activity by floating/sponsoring/launching, unregistered/unauthorised CIS, as defined in the Section 11AA of the SEBI Act. MVL Limited [PAN:AAFCM2372M] and its directors viz., Mr. Prem Adip Rishi [PAN:AGQPR9177H; DIN: 00020611], Mr. Praveen Kumar [PAN:ADQPK8192E; DIN: 01332414], Mr. Rakesh Gupta [PAN:AAJPG3712C; DIN: 00020638], Mr. Vinod Malik [PAN:ABLPM6562D; DIN: 01275161], Mr. Vinod Kumar Khurana [PAN:AAIPK7996F; DIN: 01863652], Mr. Vijay Kumar Sood [PAN:ACBPS9229G; DIN: 01325491] and Ms. Kalpana Gupta [PAN:AAGPG5434L; DIN: 02300348] shall abstain from collecting any money from the investors or launch or carry out any Collective Investment Schemes including the schemes which have been identified as a Collective Investment Scheme in this Order. MVL Limited and its directors viz., Mr. Prem Adip Rishi, Mr. Praveen Kumar, Mr. Rakesh Gupta, Mr. Vinod Malik, Mr. Vinod Kumar Khurana, Mr. Vijay Kumar Sood and Ms. Kalpana Gupta, shall wind up the existing Collective Investment Schemes and refund the monies collected by the said company under the schemes with returns which are due to its investors as per the terms of offer within a period of three months from the date of this Order and thereafter, within a period of fifteen days, submit a winding up and repayment report to SEBI in accordance with the SEBI (Collective Investment Schemes) Regulations, 1999, including the trail of funds claimed to be refunded, bank account statements indicating refund to the investors and receipt from the investors acknowledging such refunds.
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