M.Katju, J. - (1.) This writ petition has been filed with a prayer for a writ of certiorari for quashing the Securities And Exchange Board of India(Collective Investment Schemes) Regulations,1999 notified on 15.10.99 (hereinafter referred to as the 1999 Regulations), vide Annexure-9 to the writ petition. The petitioners have also prayed for a mandamus directing the respondents not to treat the petitioner no.1 as a Collective Investment Management Company . Heard learned counsel for the parties, Sri S.S. Ray and Shri S.M.A. Kazmi for the petitioners and Sri S.P. Gupta for the respondent no. 4.
(2.) The petitioner no.1 is a public Ltd. Company incorporated under the Indian Companies Act ,1956 carrying on inter-alia the business of collective hi-tech and hi-brid agro-plantation sale and development of orchards on behalf of the owners,Cottages & Agricultural land. The petitioner no.1 has also initiated its food processing unit at NOIDA (U.P.) in the name of Paramount Foods for which it has got sanction for allotment of an industrial plot from NOIDA.. The petitioner no.1 is also in the field of information technology and software consultancy . Thus petitioner no.1 has been in three types of business since its incorporation in the year 1996 viz. (a) Collective hi-brid ,hi-tech agro- farming plantation projects. (b) Sale and purchase of agriculture land and related services and ( c ) I.T. and Software consultancy.
(3.) The petitioner no.2 is a share holder and Director of petitioner no.1. It is alleged in paragraph 2 of the petition that this petition is being filed in order to safeguard the interest of the shareholders and investors / joint venture associates, who have invested their hard earned money with petitioner no.1, the interest of the individuals working for petitioner no.1, and in order to prevent agro-plantation and other projects implemented by petitioner no.1 from being destroyed / collapsed. It is alleged in paragraph 4 of the petition that for the past more than three years the petitioner no.1 and hundreds of other Companies were implementing crucial projects and schemes of collective hi-brid, agro -plantation, horticulture and orchard development schemes by pooling the resources of its Promoters, Shareholders and Directors and also by enrolling Co-investors/Joint Venture Associates amongst interested individuals by advertising and marketing network. In paragraph 5 of the petition it is alleged that certain businesses / schemes of the Companies like the petitioner no.1 had been termed as Collective Investment Schemes on the lines of similar schemes carried on by companies in various other countries.;