January 04,
2011
PR No. 001/2011
Shri Prashant Saran, Whole Time Member, SEBI, has passed an order dated January 03, 2011, in the matter of M/s. Rose Valley Real Estates & Constructions Ltd.
M/s. Rose Valley Real Estates & Constructions Ltd, has been directed :
- not to collect any money from investors or to launch any scheme;
- not to dispose of any of the properties or delineate assets of the scheme;
- not to divert any fund raised from public at large kept in bank account and/or at the custody of the company.
The above directions shall take effect immediately and shall be in force until further orders.
SEBI received a reference from Economic Offences Investigation Cell, Government of West Bengal that “M/s. Rose Valley" had been raising funds in certain districts of West Bengal, and as such was allegedly running a Collective Investment Scheme (hereinafter referred to as ‘CIS’) without obtaining a Certificate of Registration from SEBI. Upon preliminary enquiries it was found that Rose Valley Real Estates & Constructions Ltd was raising funds in the name of sale of plots of land. It allegedly took moneys in installments as low as ` 420 from public as Earnest Money for sale of plots of 720 sq ft and thereafter provided returns on amount so collected in form of credit value. However, no plot was allotted/ demarcated during the payment of initial deposits and the credit value was given to even those who opted not to take possession of land after paying the initial amount. These activities of the company carry the features of a Collective Investment Scheme (CIS), specified under Section 11AA of the SEBI Act read with Regulation 3 of the SEBI (CIS) Regulations.
One of the group companies, M/s. Rose Valley Resorts and Plantation Limited was running a CIS Scheme since 1997. This company had filed an application with SEBI for grant of certificate of registration pursuant to the notification of the CIS Regulations on October 15, 1999. However, the said application of the company was rejected by SEBI in 2003, following which it wound up the CIS scheme and repaid money to investors.
Another group company, Rose Valley Real Estates & Constructions Ltd., has now been found to carry out activities of a CIS without obtaining a Certificate of Registration from SEBI.
Mumbai
January 04, 2011
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