New Delhi, June 09, 2020: Markets regulator Sebi has directed Dairy Plantations (India) Ltd to refund money collected from investors for its collective investment scheme (CIS).
The company has been asked to invite claims within a month by issuing notice in newspapers. Further, a period of one month from the date of the advertisement will be provided to investors for submitting any claim,the regulator said in an order.
It further asked the company to wind up its existing CIS and refund the money collected by it under the scheme to the investors which are due to them strictly as per the terms of offer of the scheme, news agency PTI reported.
Also, the company and its former directors — Shernaz Kershasp Irani, Meher Khushru Patel and Rukhshana Meher Ank as well as present directors –Jeroo Nariman, Silloo R. Nariman andUrvaksh Naval Hoyvoy — have been barred from the capital markets for one year with effect from the date of filing of winding up and repayment report.
According to Sebi, Dairy Plantations had collected more than Rs 1 crore from 1,660 investors during 1992-96 through its Green Gold Bond scheme, which was in the nature ofa CIS.
The scheme was being carried out after obtaining registration from the Securities and Exchange Board of India (Sebi), which was in violation of norms.
The scheme entailed a one-timepayment of Rs 5,000 in lieu of a unit of 5 teakwood trees with a holding period of 20 years and on maturity, the investor had the option to get the teak trees or the realisedsale proceeds thereof.
The company claimed to have made repayments of over Rs 78 crore to 1,255 investors through banking channels while amount outstanding to be refunded is about Rs 22.8 lakh pertaining to 405 remaining investors. It further said it was not able to make repayments to others due to incorrect bank details and address of the investors.
“I have no hesitation in holding that the noticees (the company, its past and present directors) have grossly flouted the provisions and are liable for violation of SEBI Act and CIS Regulations,” Sebi Whole Time Member SK Mohanty said in an order passed on Friday.
The noticees have also seriously erred in not making prompt and proactive attempts to repay the amounts to those investors who categorically refused to continue with the scheme in the year 2000, he added.
“They have also grossly neglected in their duties in updating their scheme records with the latest addresses and contact details of the investors due to which the company has not been able to repay all the investors even after a period of more than 7 years from the end of 20 years of operation of the scheme,” Mohanty said.
Notwithstanding these shortcomings, it is also noteworthy that they have, over the recent years, taken steps to refund the amounts to the investors and to that extent, their actions and conduct can be said to have been towards serving the interest of their investors, the regulator said.
Sebi also noted they have redressed the grievance of the investor who had filed a complaint with the regulator in 2013 and apart from making refunds to majority of the investors, are also committed to repay the dues to the remaining investors at the earliest according to the reports published in business-standard.com.
“The noticee company shall, within a month from date of issue of this order, cause to effect a newspaper publication in one national daily in Englishand in Hindi each, and in a local daily with wide circulation in each of the states wherein the investors reside, mentioning in bold letters the name of the scheme i.e ‘Green Gold Bonds Scheme’ in the said newspaper and inviting complaints/claims from any investor in respect of the said Scheme from contributors /investors that are still outstanding,”Sebi said.
