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Rose Valley Real Estates & Construction Limited & Others v/s Securities and Exchange Board of India SEBI Bhavan

    Appeal No. 233 of 2014
    Decided On, 15 December 2014
    At, SEBI Securities Exchange Board of India Securities Appellate Tribunal
    By, MEMBER
    For the Appellants: Sudipto Sarkar, Senior Advocate with Moushmi Bhattacharya, Arup Bhattacharya, Ravela D?souza, Ajay Hailkar i/b Bachubhai Munim & Co., Advocates. For the Respondent: Kevic Setalvad, Senior Advocate with Rushin Kapadia i/b K. Ashar & Co., Advocates.

Judgment Text
J.P. Devadhar, Presiding Officer (Oral)

1. This Appeal is filed to challenge the order passed by Whole Time Member of Securities and Exchange Board of India (SEBI) on 18th June, 2014 whereby Appellants are directed to wind up its Collective Investment Scheme and refund moneys collected by it under the scheme with returns which are due to investors as per the terms of offer within a period of three months from the date of the said order. Counsel for the Appellant fairly states that the Appellants are ready and willing to comply with the order passed by the Whole Time Member. However, in view of SEBI restraining the Appellants from dealing with their properties in its ex‐parte order, Appellants are not in a position to comply with the order. Counsel for SEBI states that once final order is passed, ex‐parte ad‐interim order gets merged into the final order and, therefore, for the purpose of implementing the final order of 18th June, 2014, Appellants would be entitled to sell their properties and utilize the sale proceeds only for making payment to the investors of the Appellant No.1. Accordingly, we permit the Appellants to sell the properties belonging to them under the supervision of SEBI by expressly making it clear that the sale proceeds received on sale of the properties shall be utilized only for the purpose of making payment to investors of Appellant No.1. Appellants are directed to dispose of the properties belonging to them as expeditiously as possible and in any event within a period of six months from today. Subject to the Appellants complying with the impugned order dated 18th June, 2014 with

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in a period of six months from today, SEBI shall not take any further proceedings against Appellants. 2. Appeal is disposed of in above terms with no order as to costs.