Delhi court fines plantation company for violating SEBI norms
A plantation company and its two directors have been slapped with a fine of Rs2.25 lakh by a Delhi court for collecting a huge sum of money from the public, promising them high returns, without prior Securities and Exchange Board of India (SEBI) permission. Additional sessions judge Pawan Kumar Jain fined Yojna Agro Forestry Ltd, a firm among hundreds of collective investment companies (CIS) on a complaint by market watchdog SEBI to prosecute the plantation company for not getting prior certificate from it as prescribed by the SEBI Act.
SEBI had alleged “the company had floated the CIS and mobilised crores of rupees from general public, in violation of the provisions of the SEBI Act which stipulates prior SEBI approval of such schemes”.
ASJ Jain imposed the fine after convicting the firm and two of its promoters. “Ends of justice will be met if convicts are burdened with the fine of Rs75,000 each upon Yojna Agro Forestry Ltd and it directors, Mukul C Aggarwal and Gopal Dutt, in default of which they will undergo three months simple imprisonment,” the court said.
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