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TMI Blog2015 (2) TMI 1287X X X X Extracts X X X X X X X X Extracts X X X X ..... details of the past and present directors, details of the funds mobilized under various schemes in order to ascertain whether it was carrying on the activities of a 'Collective Investment Scheme' (hereinafter referred to as 'CIS'). 2. HBN instead of replying to the SEBI letter, filed an application for registration as CIS on June 30, 2010. With the application, HBN also submitted the copies of certificate of incorporation, notice to its shareholders, minutes of the Extra-ordinary General Meeting, Trust Deed and 'Rule Book'. SEBI vide its letter dated July 23, 2010, sought certain documents/ details from HBN, as the information submitted was incomplete. HBN failed to provide such information/ details within the time specified. SEBI vide its letters dated September 22, 2010 and December 02, 2010, also sent reminders to HBN. Later, HBN vide its letter dated December 23, 2010, withdrew its application for registration, while submitting that it does not wish to initiate the activities covered under the CIS. 3. Thereafter, SEBI again vide its letter dated February 01, 2011, advised HBN to submit the information/ documents sought earlier vide letter dated Februar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceipt thereof. It was also informed that in case of failure to reply, it would be presumed that HBN had no explanation to offer and that SEBI shall proceed in the matter on the basis of the material available on record. 6. No reply was received from the noticees. However, before proceeding further in the matter, an opportunity of personal hearing was granted to all the noticees on July 11, 2013. In the meantime, the noticees namely HBN, Mr. Harmender Singh Sran, Mr. Amandeep Singh Sran, Ms. Manjeet Kaur Sran and Ms. Jasbeer Kaur vide letter dated July 09, 2013, submitted a common reply, which was taken on record. The submissions made by HBN, in brief are as under: a. The present management of HBN consists of Mr. Harmender Singh Sran, Mr. Amandeep Singh Sran, Ms. Manjeet Kaur Sran and Ms. Jasbeer Kaur. Other noticees i.e. Mr. Satnam Singh Randhawa, Mr. Gajraj Singh Chauhan, Mr. Rakesh Kumar Tomar, Mr. Sukhdev Singh Dhillon and Ms. Sukhjeet Kaur have ceased to be the directors of HBN and their names may be dropped from the present proceedings. b. The schemes/ plans of HBN are not in the nature of CIS. The money is provided by the customers of HBN to facilitate its business. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Singh Sran, Ms. Manjeet Kaur Sran and Ms. Jasbeer Kaur and made oral submissions. During the course of personal hearing the authorised representatives submitted that the money is taken as trade deposits and assured returns were given for its schemes. It was also admitted that HBN has deposits of around Rs.1,100 crore, collected from the public. The representatives also expressed the intentions of HBN and its directors, in repaying the amount so collected, back to the public. 8. The submissions made were duly considered by SEBI and an interim order dated July 12, 2013 (hereinafter referred to as 'interim order') was issued with the following directions: "a. HBN and its directors Mr. Harmender Singh Sran, Mr. Satnam Singh Randhawa, Mr. Amandeep Singh Sran, Mr. Gajraj Singh Chauhan, Ms. Manjeet Kaur Sran, Ms. Jasbeer Kaur, Mr. Rakesh Kumar Tomar, Mr. Sukhdev Singh Dhillon and Ms. Sukhjeet Kaur, shall not solicit or collect any further money/ investments from investors/ customers into its schemes or launch or carry out any money collection schemes. b. HBN and its aforesaid directors shall submit to SEBI, a reasonable proposal including firm time lines with regard to the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he approved process. Accordingly, an opportunity of personal hearing was granted to HBN on December 12, 2014. However, HBN through its Managing Directors namely Mr. Amandeep Singh Sran vide email dated December 02, 2014, requested for an adjournment on the ground of a family wedding. The request was acceded to and the hearing was rescheduled to January 09, 2015, which was rescheduled to January 14, 2015, due to certain administrative exigencies. Thereafter, HBN vide its email dated January 02, 2015, requested for change of the venue of the hearing to Delhi. The request was acceded to and the matter was rescheduled to January 16, 2015. On the date fixed, Ms. Anju Jain, Advocate; Mr. Hitesh Sachar, Advocate; Mr. Punkaj Jain, FCA and Mr. Sunil Arora, FCA appeared for the noticees namely HBN, Mr. Harmender Singh Sran, Mr. Amandeep Singh Sran, Ms. Manjeet Kaur Sran and Ms. Jasbeer Kaur and made oral submissions that it has repaid about Rs.242 crore to its investors. The representatives also relied upon the written submissions filed on January 15, 2015. During the course of personal hearing, the Company and its directors were asked to explain as to why SEBI should not consider that the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fund the money of its customers, issued various directions. Pursuant to passing of such directions, HBN has been complying with these and subsequent orders/ directions without any default. It has stopped receiving/ collecting money from its customers and has disposed of the properties only for the purposes of repaying its customers. It has been filing the details of the investors with the repayment/ refund details from time to time to SEBI. As on December 18, 2014, HBN has repaid Rs.242.17 crore to 2,36,307 investors. d. HBN has been regularly reporting to SEBI about the development vis-a-vis the repayment to the investors and has been adhering to each and every communication/ direction received from SEBI. e. HBN has sold various assets and have also liquidated the investments of the group companies to repay to its investors. It is still in search of prospective buyers for its various properties. However due to the depressed market conditions/ liquidity crunch HBN is facing lack of interest from the buyers towards various properties held by it. The same was also brought to the notice of SEBI on various occasions. SEBI vide its letter dated July 10, 2014, had directed HBN to loo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concurrent audit has been delayed. However, such audit is in process and the report is expected to be submitted to HBN and SEBI soon. j. In the meantime, HBN was also faced with a winding up petition filed by an alleged creditor of a group company viz. Pier-One Construction Pvt. Limited. The petition had been filed on the premise that one of the group companies namely HBN Home and Colonisers Pvt. Limited has been unable to pay the dues for certain job work carried out. Hon'ble High Court of Delhi vide its order dated July 30, 2014 passed an ex parte directions to HBN whereby the Company was restrained from selling, alienating, transferring or parting with the possession and creating any third party rights in the immovable assets of the Company and its subsidiaries. The alleged claim has been settled on September 6, 2014 and HBN has moved an application seeking recalling of the directions of Hon'ble High Court. As per the order dated December 09, 2014, Hon'ble Court has directed HBN that in case of any further assets of HBN are sought to be sold, intimation with regard to the book value of the assets and proposed sale consideration along with the details of recorded o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... importing, exporting, procuring, processing, extracting, making, preserving, packaging, bottling and canning milk and all milk products including condensed milk, powdered milk, cream, butter, butter oil, ghee, cheese, ice cream and the business of dairy farming. ... ... 3. To produce / cultivate / market agricultural products, like tea, pulses, rice, flour, spice, juices, wheat, in packed / loose in any form and derivatives. ... ... 4. To further the dairy activity purchase, sell, resell, livestock, its breeding and development, besides also carrying out the same activities on or behalf of individual or organization on a contractual / joint venture basis." A reading of the objects as stated in the Memorandum of Association shows that the Company is also in the business of breeding and development of livestock and dairy products. b. I have perused the copy of 'rule book' and 'certificate' as submitted by HBN. HBN while applying for registration as CIS had provided a copy of the 'rule book'. - The salient features/ clauses of 'rule book' are being discussed below: "1. Introduction ... ... The demand of quality milk & its a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -sum. Under Category II plans, the payments by the customers are made in installments. Other difference in the plans floated by HBN is with regard to the tenure of the plan and returns thereof. - An illustration of plans under Category I is as under: TABLE D Plan No. 'C' for 108 months (9 years) S. No. Consideration cost of Cattle/ Ghee Expected Cost of Developed Cattle/ Ghee Accidental Death Compensation (Rs.) 1 5,000 11,500 5,000 2 10,000 23,000 10,000 3 15,000 34,500 15,000 4 20,000 46,000 20,000 5 25000 57,500 25,000 10 50,000 1,15,000 50,000 "If the Joint Venturer want to purchase the cattle from the first party's (company) dairy farm and up bringing the cattle into the same dairy farm that can be done as under i. The cost of the cattle includes maintenance expenses which will be paid by the joint venturer to the first party (company) at the time of agreement. ii. The Agreement will be for a fixed period of 6, 6 years and 8 months, 9 year in Category - I. iii. The Agreement cannot be cancelled upto 3 years. After 3 year if the joint venture wants to cancel the agreement, then the first party will charge 25% of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of any Products installment. If however, any notice or reminder is issued, such notice or reminder should not be considered as obligatory on the part of the company and should not be taken as a precedent under any circumstances. 6. The company shall issue certificate on the basis of application form. A certificate issued by company shall bear the seal/ stamp of company & shall be signed by the Chairman or any other authorised officer of company. ... 8. Joint Venture(s) shall be repaid on expiry of term. ... ... 10. The company reserves the right to reject any application for joint venture without assigning any reason thereof. .........." The application form finds mention of the Category Plan no., Term of plan, Consideration, Date of commencement, Expiry date of joint venture, Mode of Payment, etc. The application form also contains the details such as the name of applicant, correspondence address, nominee name, etc. It is noted from the 'application form' that the same does not speak anything about the cattle. The salient features as discussed above categorically states that the Joint Venturer shall be repaid only after expiry of the term. d. Joint Ventur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investment made by the customer and the appreciated value available on completion of the term. A few other samples of 'certificate' also states that 'At the end of Term 10% of Consideration Amount will be paid as Bonus if the Joint Venture is NOT LAPSED.' It is noted that though the certificate has been issued against the booking of cattle, the certificate does not record anything about the identity/ description of the cattle. The same, only record the investment made by the customer and the redemption value with date. f. Receipt: Certificate also contains the 'first installment receipt-cum-acceptance letter' which reads as under: "RECEVIED with thanks from the person mentioned as Joint Venturer in the schedule below. The amount of first instalment of subscription alongwith admission fee of Rs. 5/- in pursuance of application made by the said person for Joint Venture with HBN Dairies & Allied Ltd. The said application is hereby accepted by the company subject to Rule Book as amended from time to time." The same also gives the expiry date of the plan. g. From the discussion above, it is observed that HBN was inviting applications from the customers/ i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct and directed SEBI to formulate Regulations for the purpose of regulating these CISs. It was against this background that Section 11AA of the SEBI Act and the CIS Regulations came to be framed. Thereafter, several press releases and newspaper advertisements/ notices were issued by SEBI from time to time in the leading newspapers bringing to the notice of the investors and the persons concerned, the various instructions issued by SEBI/ Central Government from time to time in respect of the functioning of the CIS. The press releases further stated that instruments such as agro bonds, plantation bonds should be treated as CIS coming under the SEBI Act. All the companies having such activities were required to file information with SEBI. Moreover, general public was also informed that no person can sponsor or cause to be sponsored any new CIS and thereafter raise further funds. Meanwhile, a committee was formed to examine and finalize the draft regulations for CIS to structure a comprehensive regulatory framework. Subsequently, the notification of CIS Regulations was issued on October 15, 1999. As per the CIS Regulations, any person who has been operating a CIS at the time of commenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financial companies iii. being a contract of insurance iv. providing for any scheme, Pension Scheme or the Insurance Scheme framed under the Employees Provident Fund v. under which deposits are accepted under section 58A of the Companies Act, 1956 vi. under which deposits are accepted by a company declared as a Nidhi or a mutual benefit society vii. falling within the meaning of Chit business as defined in clause (d) of section 2 of the Chit Fund Act, 1982(40 of 1982); viii. under which contributions made are in the nature of subscription to a mutual fund; [ix. such other scheme or arrangement which the Central Government may, in consultation with the Board, notify,] shall not be a collective investment scheme." The term 'securities' in section 2(h) of the Securities Contracts (Regulation) Act, 1956 was amended vide the Securities Laws (Amendment) Act, 1999, w.e.f. February 22, 2000, to include units or any other instrument issued by any collective investment scheme to the investors in such schemes. j. Let me now, proceed to test the characteristics of the impugned schemes/ plans floated and carried on by the Company against the four conditions under Section 11AA(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profits, income, produce or property, whether movable or immovable from such scheme or arrangement. As discussed above, the joint venturer/ investors make payments towards the schemes/ plans promoted by HBN. The 'rule book' itself assures joint venturers/ investors of 'expected cost of the developed cattle/ ghee' which means nothing but profits. Further, the customer is also promised 'Accidental Death Compensation'. The same is also a benefit. The 'certificate' issued by HBN also finds mention about the profits/ income. Also the admission of HBN in its reply dated July 08, 2013 i.e. the customer who enters into an agreement with the company is entitled to assured returns on the payments so made as per the plans. Further, HBN has also stated the customer is under no obligation to purchase the cattle from the Company and it is optional to buy live stock from it. This makes it clear that the joint venturer/ investor makes contribution/ payment with a view to receive the profits/ income/ property/ return on their initial investments that may accrue to them as applicable, thus attracting the second condition as stipulated in Section 11AA(2)(ii) of the SEB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this regard, I place my reliance on the observations of the Hon'ble Supreme Court, made in the matter of PGF Limited & Ors. Vs. Union of India & Anrs. (Civil Appeal No. 6572 of 2004): "Therefore, the paramount object of the Parliament in enacting the SEBI Act itself and in particular the addition of Section 11AA was with a view to protect the gullible investors most of whom are poor and uneducated or retired personnel or those who belong to middle income group and who seek to invest their hard earned retirement benefits or savings in such schemes with a view to earn some sustained benefits or with the fond hope that such investment will get appreciated in course of time. Certain other Section of the people who are worstly affected are those who belong to the middle income group who again make such investments in order to earn some extra financial benefits and thereby improve their standard of living and on very many occasions to cater to the need of the educational career of their children. 38. Since it was noticed in the early 90s that there was mushroom growth of attractive schemes or arrangements, which persuaded the above vulnerable group getting attracted towards such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessary protection for their investments in the event of such schemes or arrangements either being successfully operated upon or by any misfortune happen to be abandoned, where again there would be sufficient safeguards made for an assured refund of investments made, if not in full, at least a part of it. ... ... In the light of our above conclusions on this ground it will have to be held that Section 11AA is a valid provision, not suffering from any infirmity, as it does not intrude into the specific activities of sale of agricultural land and its development. ... ... It is needless to state that as per the agreement between the customer and the PGF Limited, it is the responsibility of the PGF Limited to carry out the developmental activity in the land and thereby the PGF Limited undertook to manage the scheme/arrangement on behalf of the customers. Having regard to the location of the lands sold in units to the customers, which are located in different states while the customers are stated to be from different parts of the country it is well-neigh possible for the customers to have day to day control over the management and operation of the scheme/arrangement. In thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;person' without obtaining the certificate of registration in terms of the provisions of the CIS Regulations is in contravention of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations. I note that HBN has launched a CIS without obtaining certificate of registration from SEBI, it has contravened the provisions of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations. 17. Whether HBN has failed to repay to the investors as per the approved detailed procedure? a. I note that HBN, vide letter its dated August 08, 2013, had forwarded a repayment proposal/ schedule and a list of its properties. The said proposal/ schedule was examined by SEBI and a detailed procedure for making repayments was forwarded to HBN, vide letter dated January 06, 2014, for necessary compliance. The procedure inter alia required as under: - HBN to provide the details about its investors/ customers to SEBI. - HBN to appoint a SEBI registered Registrar and Share Transfer Agent (hereinafter referred to as 'RTA') after obtaining approval of SEBI within one month for managing the escrow account and handling the entire repayment process. For the said purpose, it h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovide an undertaking in the form of an affidavit to the effect that the said money would be utilized only for the purposes of repayment to investors. - HBN to submit a monthly report to SEBI on the progress of realization of assets/ selling of scheme assets. b. As per the procedure laid, HBN appointed one M/s MAS Services Limited as RTA and A.N. Associates as the 'Government approved valuer' as approved by SEBI on March 28, 2014. Approval for appointment of M/s. Garg Mendiratta and Associates as the auditor was given on March 28, 2014. Later as M/s. Garg Mendiratta and Associates resigned as auditor, HBN appointed a new auditor namely M/s. R Shandilya & Associates. Approval for appointment of M/s. R Shandilya & Associates as auditor and M/s. Garg & Associates as the 'Government approved valuer' was given vide letter dated July 09, 2014. Approval for appointment of S.C. Vohra as the 'Government approved valuer' was given vide letter dated August 21, 2014. Since, SEBI was not receiving any details of the investors and the monthly report on asset realization from HBN. SEBI vide letters dated April 01, 2014, April 21, 2014 and April 25, 2014, had sought said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ' Mall and Paschim Vihar be published in the national daily like Times of India/ Hindustan Times by May 18, 2014. - HBN to submit the artwork material for the sale advertisement to SEBI by May 16, 2014 and on approval, publish the same in the property section of the newspapers to attract buyers. HBN to initiate valuation process of these properties including all other properties immediately. - HBN to notify the development/ progress in the procedure, if any, to SEBI on day to day basis. e. HBN vide its letter dated May 15, 2014, submitted a representation with regard to the repayment to the investors, while stating as under: - HBN has about 21 lakh investors out of which around 15 lakh investors are holding small sum of investments in the range of Rs.100 - Rs.5,000 amounting to about Rs.200 crore as under: TABLE G S.No. Amount due No. of investors Amount due (in lakh) 1 Upto Rs.1,000 9,06,093 Rs.3,505 2 Rs.1,001 - Rs.2,000 2,50,352 Rs.3,711 3 Rs.2,001 - Rs.3,000 1,63,557 Rs.4,115 4 Rs.3,001 - Rs.4,000 1,20,890 Rs.4,242 5 Rs.4,001 - Rs.5,000 98,100 Rs.4,450 Total 15,38,992 Rs.20,023 HBN has said that most of such investors are l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cates to the branches. It has also been said that the cheques are dispatched to the branches who in turn shall make the payment to the investors and get the receipt of acknowledgement duly signed by the investors which shall be further verified by concurrent auditors and RTA, at specific intervals. This representation of HBN was forwarded to RTA on May 28, 2014, for its comments. RTA vide its letter dated June 02, 2014, provided its comments. seema f. In line with the discussion on May 15, 2014, HBN vide its letter dated May 19, 2014, forwarded a copy of the newspaper advertisement in relation to the sale of properties. Along with this letter, HBN also submitted copies of the bank statements evidencing the transfer of funds from its several accounts to the escrow account maintained with the Bank of Baroda. Thereafter, a meeting was held between SEBI, HBN and the RTA on June 03, 2014, wherein HBN was suggested to issue an advertisement with regard to the repayment and also to look into the possibility of selling its properties through auction/ tender process. It was also informed by HBN that the escrow account has a balance of Rs.31 lakh and that by June 12, 2014, they are expect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comply with the order dated July 12, 2013. i. HBN vide its another letter dated September 09, 2014, informed SEBI that it has repaid Rs.212.16 crore to 2,16,616 investors. At this stage, I note that HBN vide its written submissions dated January 14, 2015, has submitted that it had deposited Rs.32 lakh in the escrow account. However, the said account could not be made operational/ functional. The same shows that the repayments made by HBN were not through the escrow account. SEBI vide its letter dated October 28, 2014, sought the status of the repayment including compliance of SEBI's earlier letters dated January 06, 2014 and July 10, 2014, from HBN. The details of the amounts credited by HBN in the escrow account was also sought. However, SEBI did not receive any reply to this letter from HBN. Later, vide another letter dated December 18, 2014, HBN informed SEBI that it has repaid Rs.242.17 crores to 2,36,307 investors. Thereafter, before the date of personal hearing on January 16, 2014, HBN submitted written submissions, copies of various letters and the orders of Hon'ble High Court of Delhi. Vide another letter dated February 02, 2015, HBN again submitted written submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e forwarding its submissions dated January 14, 2015, has provided two compact disks (CDs) to show that it has repaid to Rs.242,17,08,260 to 2,36,307 investors upto November 30, 2014. During the course of personal hearing dated January 16, 2015, SEBI had asked HBN to submit the bank account statements from where approximately Rs.242 crore have been disbursed. In compliance, HBN on February 03, 2014, submitted four volumes of paper book containing the various bank statements. I note that the bank account statements so submitted by HBN are not in sequence (either bank wise or area wise). However, an attempt was made to cross verify the claim of repayment by HBN and investor complaint on sample basis. For the same, two samples were selected i.e. Mr. Virendra Kumar Loniya and Mr. Ram Dayal Loniya, according to the Company their details are as under: TABLE I S. No. Name of investor Date of investment Amount of investment Maturity date Promised return on maturity Date of repayment Proportionate promised return Mode of payment 1. Virendra Kumar Loniya 29/01/2007 Rs.11,040 29/04/2013 Rs.18,000 24/01/2014 14,126 Cheque/ DD 2. Ram Dayal Loniya 16/03/2007 Rs.9,400 16/06 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Having considered the steps taken by HBN in pursuance to the detailed procedure prescribed by SEBI for making repayments, order of Hon'ble Delhi High Court and the investor complaints received by SEBI, my observations in this regard are as under: - HBN had not transferred the entire cash/ deposits in the escrow account within two days of opening of the same. The escrow account was opened on April 29, 2014. HBN vide its letter dated May 13, 2014, intimated SEBI that Rs.193.73 crores have been repaid to 2,00,517 investors. It is clear that such repayment, if done were made not through the escrow account. Further, as on December 18, 2014, HBN has claimed to have repaid Rs.242.17 crores to 2,36,307 investors again not from the escrow account. - HBN has failed to intimate SEBI about the petition filed by Pier-one Construction Pvt. Limited before the Hon'ble Delhi High Court and the order of Hon'ble Court dated July 30, 2014 i.e. the direction to HBN to restrain from selling, alienating, transferring or parting with the possession and creating any third party rights in the immovable assets of the Company and its subsidiaries. HBN and its directors vide the said order were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dure for making repayments. In the light of the above and the admission of HBN that it has not been able to adhere to the timelines given by SEBI to repay the investors, I note that HBN has clearly failed to follow the procedure laid down for the repayment and failed to call back the loans and advances given by it to its subsidiaries and others. As per the submissions dated February 02, 2015, HBN had initiated the process of repayment from August 2013 i.e. after filing of the proposal dated August 08, 2013 to SEBI. As on January 27, 2014, it has brought to the notice of SEBI that pursuant to the submission of proposal, it had already paid about Rs.140 crores. From the same, it is interesting to note that HBN had repaid about Rs.140 crore within a period of five months (i.e. during August 2013 - January 2014). In the second period of one year (i.e. February 2014 - January 2015), HBN has stated to repay only Rs.102 crore (i.e. Rs.242 crore - Rs.140 crore). During the second period i.e. February 2014 - January 2015, HBN had issued various advertisements and in common parlance it should have returned more money than it paid during August 2013 - January 2014. This raises serious doubt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot make any such deduction, as the liability to repay the investors has arisen out of its illegal manner of fund mobilization from them. Therefore, wherever such deductions were made, HBN shall make full payments to its investors with returns that were assured. The auditor has also observed that HBN did not provide full chain of repayments and also that it has used the stationery of group companies for making payments. These statements therefore create a doubt as to whether the claim of partial repayments made by the Company, is genuine. 19. Now let me deal with the liability of its directors - both past and present. The SCNs have been issued to Mr. Harmender Singh Sran, Mr. Satnam Singh Randhava, Mr. Amandeep Singh Sran, Mr. Gajraj Singh Chauhan, Ms. Manjeet Kaur Sran, Ms. Jasbeer Kaur, Mr. Rakesh Kumar Tomar, Mr. Sukhdev Singh Dhillon and Ms. Sukhjeet Kaur. HBN in its reply dated July 09, 2013, has submitted that Mr. Satnam Singh Randhava, Mr. Gajraj Singh Chauhan, Mr. Rakesh Kumar Tomar, Mr. Sukhdev Singh Dhillon and Ms. Sukhjeet Kaur have ceased to be the directors of HBN the details of their resignation are as under: Table - J Name Date of ceasing Satnam Singh Randhava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amandeep Singh Sran, Mr. Gajraj Singh Chauhan, Ms. Manjeet Kaur Sran, Ms. Jasbeer Kaur, Mr. Rakesh Kumar Tomar, Mr. Sukhdev Singh Dhillon and Ms. Sukhjeet Kaur are restrained from accessing the securities market and are prohibited from buying, selling or otherwise dealing in securities market for a period of four (4) years. c. HBN Dairies & Allied Limited and its directors namely Mr. Harmender Singh Sran, Mr. Amandeep Singh Sran, Ms. Manjeet Kaur Sran and Ms. Jasbeer Kaur shall forthwith wind up the existing Collective Investment Schemes and refund the money collected by the said company under the schemes with returns which are due to its investors as per the terms of offer, on or before March 09, 2015 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. d. The Company shall provide proof including trail of funds, bank statements to support its contention that it has refunded the monies to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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