Diamondray Industries, Directors Asked To Refund Rs40.15 Lakh with 15% Interest to Investors
Moneylife Digital Team 01 August 2024
Market regulator Securities and Exchange Board of India (SEBI) has ordered Diamondray Industries Ltd (DIL) and the company directors Taiebul Haque Sahaji, Subrata Bandyopadhyay and Mohammad Abdur Razzak (noticees) to jointly and severally refund money collected through the issuance of redeemable preference shares (RPS) in FY12-13. While barring all four from markets for two years, SEBI also directed them to refund application money collected from investors pending allotment of securities, if any, with an interest of 15%pa (per annum).
 
In an order, Dr Anitha Anoop, chief general manager (CGM) of SEBI, "It is noted that Taiebul Haque Sahaji, Subrata Bandyopadhyay and Mohammad Abdur Razzak were directors at the time of issuance of the RPS during FY12-13. These persons were acting as directors during the period of issuance of RPS and therefore, they are officers in default as per Section 5(g) of the Companies Act, 1956."
 
"As per Section 5(g) of the Companies Act, 1956 all the said directors of the company Taiebul Haque Sahaji, Subrata Bandyopadhyay and Mohammad Abdur Razzak, as officers in default, are liable to make refund, jointly and severally, along with interest at the rate of 15% per annum under Section 73(2) of the Companies Act, 1956," the SEBI order says.
 
DIL, incorporated on 12 March 2012, is an unlisted public company. The company has come under scrutiny by SEBI due to complaints and certificates of RPS issued by DIL. This scrutiny followed a joint inventory conducted by SEBI and the directorate of economic offences, West Bengal, in compliance with a court order from the Calcutta High Court
 
SEBI, during the examination, reviewed filings made by DIL on the MCA (ministry of corporate affairs) website. It was noted that DIL had filed a detailed list of RPS allottees for FY12-13, showing that RPS were issued to 207 individuals, raising an amount of Rs40.15 lakh. However, additional details provided by a complainant indicated that RPS were also allotted on 19 July 2012 without corresponding filings on the MCA portal. This discrepancy suggests that the total number of investors and the amounts mobilised could be higher than reported.
 
SEBI's examination revealed that in FY12-13, DIL issued RPS to more than 49 persons, making it a public issue of securities without adhering to legal provisions. "DIL has also not complied with the provisions of Section 73(3), which mandates that the amounts received from the investors be kept in a separate bank account. In view of the same, it is noted that DIL has not complied with Sections 73(1), (2)and (3) of the Companies Act, 1956," the market regulator says.
 
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