DIRECTOR GENERAL OF INVESTIGATION & REGISTRATION Vs. DESERT GOLD INDIA IRRIGATION LTD.
MONO POLIES AND RESTRICTIVE TRADE PRACTICES COMMISSION
DIRECTOR GENERAL OF INVESTIGATION AND REGISTRATION
DESERT GOLD INDIA IRRIGATION LTD.
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S. Chakravarthy, Member -
(1.) ON an application filed by the Director General of Investigation & Registration (DG) under Section 36B(c) of the MRTP Act, 1969, the Commission issued a Notice of Enquiry (NOE) on 7th Nov.,94 charging the respondent M/s. Desert Gold India Irrigation Ltd. of having indulged in certain unfair trade practices under Section 36A(1) of the Act. Briefly the facts as contained in the application of the DG are as follows:
(2.) THE respondent M/s. Desert Gold India Irrigation Ltd. is a public limited company having its registered office at Bombay and having been incorporated on 20th August, '92. The respondent launched a scheme known as "Desert Gold Teak Wood Scheme" and released two brochures one under the caption "Teak Wood Desert Gold Green Revolution" and the other under the caption "Desert Gold Teak Wood Shceme."
The respondent in its brochures made the following claims and assertions seeking investments from the general public.
(a) An investment of Rs. 1000/ - for each prime teak wood sapling will give an estimated return of Rs.51,000/ - after 20 years. Every investor will be given an ownership certificate. (b) Each tree will yield atleast 30 cubic feet of prime teak wood at around Rs. 1,700/ - (estimated) per cubic foot. (c) A discount of Rs. 40/ - per tree will be offered on purchase of five or more trees. (d) Facility for transfer and for nomination is available. (e) After seven years, the investor can pledge the saplings to avail of a loan or surrender the certificate and obtain full payment. (f) The agricultural income under the scheme is exempt from income -tax. (g) The scheme is insured. (h) The investment is 100% secure. (i) An early bird incentive of Rs. 20/ - off will be available on every tree purchased before 14th Sept. '92.
(3.) THE respondent further claimed in its brochures that it would develop in the first phase 8,400 acres of land in Jaisalmer District in Rajasthan for agro produce like grapes, spices, pulses, grams, oil seeds, fruits, vegetables, flowers, medicinal plants etc. 250 acres of land in Jodhpur District and another 250 acres of land near Pune will be used for teak wood cultivation.;
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