SEBI today opposed in a Delhi court Pearls Group CMD Nirmal Singh Bhangoo's plea seeking to stay proceedings in a case in which his firm has allegedly collected over Rs 49,100 crore from investors in the name of investment schemes violating the law, saying it was deliberate ploy to delay the matter.
The Securities and Exchange Board of India (SEBI) sought dismissal with exemplary cost Bhangoo's application and said the basic facts constituting the offence alleged by the regulator were altogether different from those mentioned by the CBI in its FIR.
"The application of accused number 6 (Bhangoo) filed under Section 210 of CrPC is devoid of any merit. It is submitted that it is a deliberate ploy to confuse the issue and delay the proceedings in this case.
"In view of provision of SEBI Act, complaint in respect of offences punishable under SEBI Act can be made by SEBI only. Thus, any investigation being carried by CBI in respect of said FIR will not be in respect of the offence alleged in the complaint of SEBI. No purpose will be served by staying proceedings in the above titled matter or by calling of report from CBI," the reply filed by SEBI's counsel Sanjay Mann said.
Bhangoo, in his plea filed through advocates Manish Jain and Vijay Aggarwal, has sought stay of the proceedings in the case filed by SEBI, claiming the regulator's complaint was based on the same allegations as that of CBI FIR and he cannot be tried twice for the same alleged offence.
Additional Sessions Judge Arvind Kumar, after hearing arguments, reserved its order on the plea for February 24.
The court had earlier taken cognizance of SEBI's complaint and summoned as accused Pearl Agrotech Corporation Ltd (PACL), its promoters and directors, Nirmal Singh Bhangoo, Tarlochan Singh, Sukhdev Singh, Gurmeet Singh, Subrata Bhattacharya, Joginder Tyger, Gurnam Singh, Anand Gurwant Singh and Devinder Kumar Uppal.
Bhangoo, Sukhdev, Gurmeet and Bhattacharya are already in custody in the CBI case.
In its reply, SEBI denied Bhangoo's claim that its case
was based on same set of allegations as made in CBI's FIR.
It said CBI's case was registered for alleged offences under the IPC, while the regulator's complaint was for alleged violation of provisions of SEBI Act.
The court had on December 16, 2015 summoned the accused, saying prima facie violation under the provisions of SEBI Act and regulations of SEBI (CIS) Regulations, SEBI(Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) is made out in the alleged ponzi case.
Bhangoo, in his plea, has sought court's direction to call for a status report to probe whether the investigation was continuing on the same offences as alleged in SEBI's case and that of CBI's FIR lodged in 2014.
According to the regulator's complaint filed in the court in November 2015, PACL had allegedly illegally mobilised Rs 49,100 crore and SEBI had directed it to refund the money to over five crore investors.
The firm challenged SEBI's recovery proceedings to collect funds due to investors before Securities Appellate Tribunal, the complaint said.
It claimed that the firm, which had assets worth only Rs 11,000 crore, had allegedly siphoned of a huge amount of money which was untraceable. The regulator had also imposed a penalty of over Rs 7,269 crore on the firm and its directors, it said.
Bhangoo, CMD of Pearls Golden Forest Ltd (PGF) and ex-Chairman of Pearls Australasia Pty Limited, Sukhdev Singh, MD and Promoter-Director of Pearls Agrotech Corporation Ltd (PACL), Gurmeet Singh, Executive Director(Finance) and Subrata Bhattacharya, Executive Director in the PGF/PACL were arrested by the CBI on January 8 in connection with alleged swindling of Rs 45,000 crore from over five crore investors.
In its FIR, CBI has claimed PACL and PGF were running the schemes illegally and both companies were allegedly engaged in fraudulent activities including forgery in their day-to-day operations.
