High Court rejects Rose Valley's writ petition against SEBI order
Kolkata, Mar 23 : Rose Valley Real Estate and Construction Company's writ petition challenging the January 3, order of Securities and Exchange Board of India (SEBI) was rejected by Calcutta High Court.
The SEBI had directed the company not to collect any money from investors or launch any scheme. It had also asked the firm not to dispose of any of its property in relation to the company’s collective investment scheme.
The SEBI had also alleged that the company had been mobilising deposits from the public to launch a Collective Investment Scheme without obtaining a certificate of registration from the board.
Justice Joyanta Biswas rejected the petition of Rose Valley Real Estate and Construction Company, saying it was not the appropriate forum to challenge the SEBI’s order .
Justice Biswas held that the company had the liberty to move an appeal before the Appellate forum of SEBI to oppose the order.
Earlier, the petitioner and counsels - P C Sen, S Pal and Sudipto Sarkar - told the bench of Justice Joyanta Biswas, ''As Rose Valley is not a listed one in any stock exchanges of the country, the SEBI has no jurisdiction to interfere with the affairs of the company. The affairs of the company are regulated and administered by the Ministry of Corporate Affairs, Government of India as described under Company Act, 1956.'' The petitioner further said, ''The method of receiving money for allotment of plots or land to prospective buyers cannot be equated to collection of deposit from public or trading in the security market.'' ''The principal business of the company is real estate promotion and development of the same, '' the petitioner added.
Contesting the petitioner's submission, SEBI‘s counsel Hirak Sen had stated that the company violated regulations and ''collective investment scheme is a type of collection from public which the SEBI has power to regulate.''