New Delhi: Setting aside market regulator Sebi's order, Securities Appellate Tribunal (SAT) has granted two weeks to Alchemist Infra Realty to furnish details of investors to whom it has refunded the money.
However, if the company fails to furnish requisite particulars within stipulated time period, the order passed by Sebi last month "shall stand revived", SAT said.
The matter pertains to Alchemist raising Rs 2,000 crore through public in violation of Sebi's collective investment scheme norms.
Alchemist claims to have paid Rs 1,127.06 crore to investors, out of Rs 1,916.39 crore refundable to them, by relying on bank statements, SAT said. The company counsel said the requisite particulars would be furnished within two weeks.
Securities and Exchange Board of India (Sebi), through an order dated May 27, directed prosecution proceedings against Alchemist and its directors as well as attachment of their properties to recover the money.
In an order dated June 15, SAT said: "In the interest of justice, we set aside the impugned order dated May 27 this year, subject to payment of cost of Rs 1 lakh to be paid by appellant (Alchemist) to Sebi within a period of one week from today."
The tribunal has also directed the company to furnish registration number and address of the investors to whom the payments were made, as sought by Sebi, within two weeks.
"Appellant is further directed to furnish the particulars demanded by Sebi vide letters dated December 9, 2014, and March 20, 2015...Within a period of two weeks from the order," SAT noted.
"If the requisite particulars are furnished within the time stipulated herein, then the WTM (Whole Time Member) of Sebi shall verify the same and pass appropriate order on the application filed by the appellant in accordance with law, after giving an opportunity of hearing to the appellant.
"If the appellant fails to furnish requisite particulars within the time stipulated herein, the order passed on May 27, this year shall stand revived," the Tribunal noted.
Sebi had also decided last month to refer the case to state government and local police to register a civil or criminal case against the company, its promoters, directors and other top officials "for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds".
The matter would also be referred to the Ministry of Corporate Affairs to initiate the process of winding up of the company, Sebi had said in its order.
The company had request for an extension of 24 months for making refunds to investors, which was rejected by Sebi saying Alchemist Infra and its promoters/directors have not repaid its investors within the time allowed.
Earlier, after finding that the company had raised funds from the public in violation of the collective investment scheme regulations, Sebi had passed the refund order against Alchemist on June 21, 2013.
The Sebi order was later upheld with some modifications, with regard to the time period for making refunds, by SAT.
Sebi had first asked the company to make the refund within three months, but SAT later gave it time of 18 months. Besides, the company was asked to submit a report to Sebi every six months giving details regarding the progress made while executing the scheme of repayment.
The regulator said that the company, on February 21 and September 12 last year, and on March 17, 2015, submitted copies of bank certificates giving details of the amount repaid at about Rs 1,126 crore.
The company also submitted details of repayment, which include name of the investor, cheque number, the name of the bank and date of issuance of cheque.
Later on December 9, 2014, Sebi asked the company to submit by December 16, 2014, the registration number and address of the investors to whom repayments were made.
The company has failed to provide such details till date despite issuance of a reminder on March 20, this year.
