Decided on February 03,2016



JOG SINGH,MEMBER - (1.) The question that falls for our consideration in these two appeals is whether SEBI by its confirmatory order dated August 24, 2015 is justified in continuing the directions contained in the ex -parte interim order dated June 3, 2015 until further orders. Connected with this is the issue as to whether SEBI is justified in turning down a request made by the Appellant by way of a Miscellaneous Application before this Tribunal seeking registration as CIS under the CIS Regulations, without prejudice to its right to contend that the schemes operated by it are not covered under CIS. Since a common issue is involved in these two appeals filed by the company and its directors respectively, both are heard together and disposed of by this common decision.
(2.) This is the second round of litigation. In the first instance, the Appellants had approached this tribunal by way of Appeal Nos. 336 of 2015 and 359 of 2015 in which the Appellants challenged the ad -interim ex -parte order/directions, which, according to the Appellants, practically amounted to abrupt and arbitrary closure of the business bringing everything to a standstill without first hearing the Appellants.
(3.) By the ex -parte ad -interim order dated June 3, 2015, the appellant company and its Directors were called upon to do or to abstain from doing something. The same is relevant and is reproduced hereinbelow for the sake of convenience: - "Not to collect any fresh money from "customer"/investor under its existing scheme; Not to launch any new scheme or plans in this company; Not to raise any fresh moneys from any other existing company within the group; Not to float any new companies to raise fresh moneys under the schemes; To immediately submit the full inventory of the assets obtained through money raised by Citrus; Not to dispose off or alienate any of the properties/assets obtained directly or indirectly through money raised by Citrus; Not to divert any funds raised from public at large, kept in bank account(s) and/or in the custody of Citrus or group companies or promoters or LLPs or Proprietary concerns or any person directly or indirectly controlled through shareholding or management by citrus; To furnish all the information/details sought by SEBI within 15 days from the date of receipt of this order including the following: - Full list of "customers"/investors with complete particulars such as PAN, address, telephone numbers etc. Details of rooms available for occupancy/accommodation provided/projected to be provided. Year -wise number of customers/investors (1) who have actually availed the holiday accommodation under the plan(s) submitted to the plan(s) who have encashed their points into cash. Details of assets held by Citrus and its Group companies. Full details of Mirah Group (as stated in Clause 29 of the "Offer Document"). Details of charges created on its assets by Citrus. Details of amounts mobilized as on March 31, 2014 and March 31, 2015 under its various holiday plans/schemes. Details of commission paid on amounts mobilized above. Details of agents along with their addresses etc. Audited accounts for the financial year i.e. FY 2012 -13, 2013 -14 and 2014 -15. Income tax returns for FY 2012 -13, 2013 -14 and 2014 -15. Details of fund transfers within group companies and associates and its directors for the year 2012 -13, 2013 -14 and 2014 -15.";

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