WTM/PS/129/CIS/ILO-WRO-II/JAN/2016

BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA

CORAM: PRASHANT SARAN, WHOLE TIME MEMBER
ORDER
Under Sections 11(1), 11(4) and 11B of the Securities and Exchange Board of India Act,
1992 read with Regulation 65 of the SEBI (Collective Investment Schemes)
Regulations, 1999
In the matter of HNC Infrastructures & Shares India Limited
In respect of:
1. HNC Infrastructures & Shares India Limited [PAN: AABCH9386E],
2. Mr. Santosh Kumar Saket [PAN: BVJPS1765D],
3. Mr. Ramnaresh Saket [PAN: CIMPS8022E],
4. Mr. Ramadhar Choudhary [PAN: AMWPC8208N] and
5. Mr. Satish Kumar Arya [PAN: AREPA2954N]
________________________________________________________________________
Date of Hearing:
July 10, 2015
Appearances:
For Noticees:

Mr. Ramadhar Choudhary, Director

Mr. Satish Kumar Arya, Director

For SEBI:

Mr. Piyoosh Gupta, Regional Director,

Dr. Deepali Dixit, Assistant General Manager,
Mr. T. Vinay Rajneesh, Assistant General Manager,
Mr. Piyushkumar Mahajan, Manager.
________________________________________________________________________
1.

Securities and Exchange Board of India (hereinafter referred to as SEBI) conducted

a preliminary inquiry in the investment scheme of one HNC Infrastructures &
Shares India Limited (hereinafter referred to as the Company or HNC). Pursuant
to the inquiry, SEBI vide an ex-parte interim Order dated August 05, 2014 (hereinafter
referred to as the interim order), prima facie found that HNC is engaged in fund
mobilizing activities from the public, which is in the nature of a Collective Investment
Scheme (hereinafter referred to as 'CIS') as defined in Section 11AA of the Securities
and Exchange Board of India Act, 1992 (hereinafter referred to as the SEBI Act),
without obtaining a certificate of registration from SEBI as required under Section
12(1B) of the SEBI Act and Regulation 3 of the SEBI (Collective Investment Schemes)

Page 1 of 14

Regulations, 1999 (hereinafter referred to as the CIS Regulations). The interim order
was issued in order to protect the interest of investors, to ensure that the Company
and its directors do not collect further funds under its schemes/ plans and to safeguard
the assets/ acquired by HNC and its directors from the funds of the investing public.
This Order directed HNC and its Directors, namely, Mr. Santosh Kumar Saket, Mr.
Ramnaresh Saket, Mr. Ramadhar Choudhary and Mr. Satish Kumar Arya (hereinafter
collectively referred to as noticees):
a. not to collect any fresh money from investors by its existing scheme;
b. not to launch any new scheme/plan or float any new companies to raise fresh moneys;
c. not to dispose of any of the properties or alienate the assets of the existing scheme;
d. not to divert any funds raised from public at large, kept in bank account(s) and/or in the
custody of HNC;
e. to immediately submit the full inventory of the assets owned by HNC out of the amounts
collected from the customers/investors under its existing schemes;
f. to furnish all the information sought by SEBI vide letter dated December 03, 2013,
including, sample copies of the documents/agreements/contracts executed with the
customers/investors for the purpose of the scheme.
The aforesaid directions came into force with immediate effect and the noticees were
advised to file their reply within a period of fifteen (15) days from the date of receipt
of the interim order and also to indicate whether they wish to avail an opportunity of
personal hearing in the matter.
2.

The interim order was forwarded to the Company and its directors on August 19, 2014.
The copy of the order forwarded to HNC, Mr. Ramnaresh Saket and Mr. Ramadhar
Chaudhary were duly delivered. The copy of order forwarded to Mr. Santosh Kumar
Saket and Mr. Satish Kumar Arya were not returned undelivered. The Company vide
its letter dated September 04, 2014, replied to the interim order and requested for an
opportunity of personal hearing. Accordingly, SEBI, vide letter dated March 24, 2015,
afforded an opportunity of hearing to the noticees on April 30, 2015. The Company
vide its letter dated April 04, 2015, confirmed the presence of the directors of the
Company for the personal hearing. However, the personal hearing was rescheduled to
May 21, 2015, due to certain administrative exigencies. The Company vide its letter
dated May 11, 2015, requested for rescheduling of the date of personal hearing (fixed
for May 21, 2015) after June 05, 2015, on the ground of marriage in the family of one
of the directors. The request of the noticees were considered and the personal hearing
was rescheduled to July 10, 2015. The same was intimated to the noticees vide letter
Page 2 of 14

dated June 04, 2015. As confirmation of the noticees were not received for the
personal hearing, a public notice was issued in newspaper on June 30, 2015, intimating
thereby about the personal hearing. On the date fixed, the noticees namely Mr.
Ramadhar Choudhary and Mr. Satish Kumar Arya appeared for all the noticees and
made oral submissions. Vide email dated July 13, 2015, Mr. Ramadhar Choudhary
submitted the letter of authority for the noticees namely Mr. Santosh Kumar Saket
and Mr. Ramnaresh Saket.
3.

The submissions of the noticees in brief are as under:

a. The Company is a real estate development company. The Company has land bank and
the documents pertaining to such lands are available for inspection to all the
prospective buyers. All the sums of money received were utilized for the purpose of
development of land. The money received by the Company was purely for the purpose
of development of lands.
b. The brochures or registration certificate does not specify the land details as the
proposal of the Company was to provide land to very poor villagers at affordable rates.
As these prospective buyers did not have sufficient money to invest, the Company had
offered them to make the payments in easy monthly installments and undertook to
allot the land as soon as they pay the minimum allotment money.
c. The Company gave an exit option to the buyer of land, to surrender the land in favour
of the Company in case he finds it difficult to pay the further sale consideration. The
customer application form gives an option either to get the plot allotted in its own
name or to get the money back with 12% interest. The interest of 12% was payable
only to the prospective buyers who does not wish to get the land allotted and does not
wish to continue investing the money till the entire sale consideration is paid to the
Company. The rate of interest offered in almost at par with the bank interest rate.
d. The allotment of land/ plot is not reflected in the balance sheet as the transfer of
ownership happens after receipt of the entire consideration amount and then only the
Company will be in a position to recognize the same as revenue.
e. The entire business of the Company consist of developing the land for habitation
purpose and managing the same. The registration certificate reflects that the
prospective buyers only have interest/ right over the piece of land equivalent to money

Page 3 of 14

given by them and shall not have any control over the Company and other properties
of the Company.
4.

I have considered the interim order, the reply received along with the documents
submitted and the material available on record. The interim order has alleged that the
plans/ schemes operated by the Company are in the nature of CIS and that the
Company was offering these plans/ schemes without obtaining the registration from
SEBI, in contravention of the provisions of Section 12(1B) of the SEBI Act and
Regulation 3 of the CIS Regulations read with Section 11AA of the SEBI Act. The
directors of the Company have also alleged to be responsible for the illegal conduct of
the business of the Company. The interim order has noted the features of the alleged
scheme offered by the Company.
a. It is noted that the Company had a rule book which was in the nature of promotional
material providing the details of the various schemes/ plans offered by HNC to the
prospective customers and was used for soliciting/ inviting investments. The schemes
as seen from the rule book were mainly categorised as installment scheme and
lumpsum payment scheme. A sample of such schemes as mentioned in the interim
order is being reproduced below for reference:
TABLE A
RIP/A (Installment Scheme)
(Month for 60 months)
S. No. Area of
land
booked

1
2
3
4
5

(period - for 5 years)

Installments

Monthly Quarterly Half- yearly Yearly

240
360
600
960
1,200

200
300
500
700
1,000

585
880
1,475
2,150
2,950

1,175
1,775
2,950
4,100
5,900

Amount
deposited
for land

Value of
land with
profits

Compensa
tion on
accident

12,000
18,000
30,000
42,000
60,000

16,200
24,300
40,500
56,700
81,000

18,000
27,000
45,000
63,000
90,000

2,370
3,550
5,925
8,200
11,900

TABLE B
SIP/E (Lump Sum Plan)
Years
100
1
2

5,000
5,600
6,270

Area of land booked in sq. ft.

500
600
700
800
Lump Sum payment
10,000 15,000 20,000 25,000 30,000 35,000 40,000
11,200 16,800 22,400 28,000 33,600 39,200 44,800
12,540 18,810 25,080 31,350 37,620 43,890 50,160
200

300

400

Page 4 of 14

900
45,000
50,400
56,430

1,000
50,000 Advance refund
56,000
No
62,700
No

3
4
5
6
7
8
9
10

7,020
7,860
8,805
9,660
11,045
12,370
13,855
15,515

14,040
15,720
17,610
19,720
22,090
24740
27,710
31,030

21,060
23,580
26,415
29,580
33,135
37,110
41,565
46,545

28,080
31,440
35,220
39,440
44,180
49,480
55,420
62,060

35,100
39,300
44,025
49,300
55,225
61,850
69,275
77,575

42,120 49,140
47,160 55,020
52,830 61,635
59,160 69,020
66,270 77,315
74,220 86,590
83,130 96,985
93,090 1,08,605

56,160
62,880
70,440
78,880
88,360
98,960
1,10,840
1,24,120

63,180
70,740
79,245
88,740
99,405
1,11,330
1,24,695
1,39,653

70,200
78,600
88,050
98,600
1,10,450
1,23,700
1,38,550
1,55,150

No
Yes
,,
,,
,,
,,
,,
,,

Under one of the lumpsum payment plan i.e. SIP/ E, the Company has promised
12% as yearly profit to its prospective investors. The rule book also finds mention of
the emergency loans and compensation for accident/ death to its prospective
investors.
b. For subscribing to the schemes of the Company, the investors had to execute a
customer application form. The salient features of the said customer application
form are as under:

2. The allotment of plot/land by the company to customer/investor after completion of the

three years as per the actual values of their vested amount for plot which is clearly shown on
plan table.
I. The allotment of plot /land for amount ranging from Rs.5000/- to 20,000/- allotted
will be 20 to 30 kilometres from the city.
II. The advance money deposited for the plot allotment nearby city for amount ranging
from Rs.20,000 to 50,000.

IV. If any customer is not interested to take plot/land after completion of his/her
bounded time period, he will take actual money as per plan table at the time after the
plot/land sale to company.

4. Company prescribed one instalment of minimum Rs.5000=00 and maximum

Rs.50000=00 for booking plot or by product in single installment. If the plot or product
having cost of more than 50000=00, customer can pay the amount within the proof of
income.
5. Company booked difference size of plot or product in the name of customer after advance
payment in the multiple of Rs.50=00 per sqr ft. Due to rate in cases in future will be
applicable in agreement terms and Conditions.
6. Customer can register the same plot any time which was booked in his name by company
after completed the three years.
7. I. After 3 years if customer wants allotment of plot /land booked by the company, he has
to submit written application in this regard in the office.
II. Within one month from the date of receiving the application from the customer, location
of plot/land will be fixed and allotment will be done by the company.

8. For allotment of plot/ land it is necessary that the customer must have deposited
installment at least 3 years on regular basis with the company.

Page 5 of 14

9. Customer can sell booked plot/land to company and time after completing three years and
receive advance amount along with the 12% annual profit and company terminates agreement
at the same time.
10. Customer can book company product or plot on the payment basis of monthly, quarterly,
half yearly or yearly installment for the prescribed period of 5,7,9 and 12 years.

13. The company regulates and introduces new payment as specified in rule book (time to
time) by rules and regulations and new payment plan is changed at any time without any
notice.
14. The changed terms and conditions of company will be applied on the agreement enforced
after the change.
17. The customer will not file any suit or any type of interference in distributed plot or
purchased product.
18. The customer will not interfere in any work of company he/she is only the part of scheme.
19. The customer will not interfere in the advertisement, development, project related work of
the company.
20. All the charges all included for the development in product/ plot of company.
c. Another document is a Registration Certificate issued by the Company to its investors
against the investments made. The said certificate inter alia contains the details of the
plan opted, term of the scheme, date of commitment, date of expiry, land value with
profit, expiry value payable to customer or his nominee or his blood relative, etc. The
registration certificate is more in the nature of an investment advice.
5.

Having gone through the documents of the Company, I note the following:
a. By accepting the application form, the Company only books the plot/ land. The
Company promises to allot plot/ land to its customers on specific request in this regard
after three years.
b. The registration certificate issued by the Company to its customers does not provide
the location of the plot/ land. However, the same indicates the expiry value payable
to the customer.
c. From the details of the schemes operated by HNC, it is seen that the costs of all the
plots offered by the Company are same.
d. The customer/ investor is not entitled to interfere in any work of the Company.
e. The customers were provided with the option of selling the booked plot/ land to the
Company after completing three years from the date of the application. For the same,
the customers were promised to receive the advance amount along with the 12%
annual profit.

Page 6 of 14

f. The Company has submitted certain sale deed and partnership letters which are in
favour of the Company. No sale deeds have been submitted by the Company to show
that the plot/ land was sold to the customers/ investors.
g. I also note from the interim order/ documents available on record that the Company
had offered huge commissions to its agents for promoting its schemes/ plans.
6.

Having discussed the above, now I proceed to test the characteristics of the impugned
plans/ schemes floated and carried on by the Company. For concluding whether a
scheme is a CIS or not, all the four conditions under Section 11AA(2) of the SEBI Act
should be satisfied. The provisions of Section 11AA(1) and (2) are mentioned below:
11AA. (1) Any scheme or arrangement which satisfies the conditions referred to in subsection (2) or sub-section (2A) shall be a collective investment scheme:
Provided that any pooling of funds under any scheme or arrangement, which is not registered
with the Board or is not covered under sub-section (3), involving a corpus amount of one
hundred crore rupees or more shall be deemed to be a collective investment scheme.
(2) Any scheme or arrangement made or offered by any person under which,
(i) the contributions, or payments made by the investors, by whatever name called, are pooled
and utilized for the purposes of the scheme or arrangement;
(ii) the contributions or payments are made to such scheme or arrangement by the investors
with a view to receive profits, income, produce or property, whether movable or immovable,
from such scheme or arrangement;
(iii) the property, contribution or investment forming part of scheme or arrangement, whether
identifiable or not, is managed on behalf of the investors;
(iv) the investors do not have day-to-day control over the management and operation of the
scheme or arrangement.

i.

The first condition is that the contributions, or payments made by the investors, by whatever name
called, are pooled and utilized for the purposes of the scheme or arrangement. In this regard, I note
that the Company has admitted that accepted money from the investors/ customers
for subscribing to one of its plans offered for the purchase of plot. The investors/
customers by way of an application applies for the purchase of the land. The Company
do not identify the land to be sold to such investor/ customer either in the application
form or in the registration certificate. As per the terms and conditions stated in the
application form, the investor/ customer can book the plot/ land on payment of
installment and such plot/ land will be allotted after completion of the three years.

Page 7 of 14

As per the clause 7 of the terms and conditions as stated on the reverse of the
application form, after completion of the three years of the scheme, if the customer
wants allotment of plot/ land, he has to submit a written application in this regard to
the Company. Thereafter, within a period of one month the location of the plot/ land
is said to be fixed.
These facts show that the Company pools the investment made by the customers and
as per the application form only after three years of making application allots the land
that also after making a specific request. The same is sufficient to find that the
'contributions, or payments made by the investors, are pooled and utilised by the
Company for the purposes of the scheme or arrangement'. Thus, satisfying the first
condition as stipulated in Section 11AA(2)(i) of the SEBI Act.
ii.

The second condition is that the contributions or payments are made to such scheme or
arrangement by the investors with a view to receive profits, income, produce or property, whether
movable or immovable from such scheme or arrangement. As perused from the rule book of
the Company, all the schemes of the Company provides for the value of land with
profit after the period of the schemes and the compensation on accident. The same
shows that the investment/ contributions were made by the investors/ customers with
a view to earn profits. The registration certificate issued by the Company also
mentions the expiry value payable to customer at the end of the term of the scheme.
The relevant clauses of the terms and conditions stated on the reverse of the
application form are also relevant to be noted in this regard:
2. IV. If the any customer is not interested to take plot/land after completion of his/her
bounded time period, he will take actual money as per plan table at the time after the
plot/land sale to company.
9. Customer can sell booked plot/land to company and time after completing three years and
receive advance amount along with the 12% annual profit and company terminates agreement
at the same time.
The Company in its reply to the interim order has submitted that it gives an exit option
to the investors/ customers by surrendering the land in favour of the Company, in
case he/ she finds difficulty in paying the further sale consideration. It has also been
said that the interest was payable only to the prospective buyers who did not wish to
get the land allotted and also does not wish to continue investing the money to the
Company. These submissions of the Company hints that the schemes of the Company
Page 8 of 14

are not mere sale, purchase and development of land and the same are more in the
nature of earning profits. From the above, it is clear that the customers/ investors
had made the contribution/ payment to the Company with a view of earning profits/
income/ property/ return on the initial investments that may accrue to them as
applicable, thus attracting the second condition as stipulated in Section 11AA(2)(ii) of
the SEBI Act.
iii.

The third and fourth conditions under Section 11AA(2) of the SEBI Act can be
discussed together. The said conditions are that the property, contribution or investment
forming part of scheme or arrangement, whether identifiable or not, is managed on behalf of the investors
and the investors do not have day to day control over the management and operation of the scheme or
arrangement. In this regard, the following clauses from the terms and conditions stated
in the application form are referred:
5. Company booked difference size of plot or product in the name of customer after advance
payment in the multiple of Rs.50=00 per sqr ft. Due to rate in cases in future will be
applicable in agreement terms and Conditions.
17. The customer will not file any suit or any type of interference in distributed plot or
purchased product.
18. The customer will not interfere in any work of company he/she is only the part of scheme.
19. The customer will not interfere in the advertisement, development, project related work of
the company.
The above clauses indicate that the investor/ customer does not manage his/ her
investments in the scheme rather the investments were managed by the Company on
behalf of its investors. As the contribution/ investment and the plot are managed by
HNC on behalf of its customers, they do not have any role in their management. In
view of the discussion above, it can be concluded that the schemes of the Company
satisfies the third and fourth conditions under Section 11AA (2) of the SEBI Act also.

7.

As all the four conditions specified under Section 11AA(2) of the SEBI Act are
satisfied in this case, the schemes promoted, launched, carried on and operated by the
Company are in the nature of CIS, in terms of Section 11AA of the SEBI Act.

Page 9 of 14

8.

Section 12(1B) of the SEBI Act mandates that no person, shall sponsor or cause to be
sponsored or carry on or caused to be carried on any CIS unless it obtains a certificate
of registration from SEBI in accordance with the CIS Regulations. The Company has
clearly failed to do so. Regulation 3 of the CIS Regulations provides that no person
other than a Collective Investment Management Company which has obtained a
certificate under the said regulations shall carry on or sponsor or launch a 'CIS'. A
person can launch or sponsor or cause to sponsor a CIS only if it is registered with
SEBI as a Collective Investment Management Company. Therefore, the launching/
floating/ sponsoring/ causing to sponsor any 'collective investment scheme' by any
'person' without obtaining the certificate of registration in terms of the provisions of
the CIS Regulations is in contravention of Section 12(1B) of the SEBI Act and
Regulation 3 of the CIS Regulations.

9.

The activities of the Company are not exempt under the clauses under Section
11AA(3) of the SEBI Act. Therefore, having concluded that the activities of the
Company are CIS in terms of Section 11AA of the SEBI Act and that the same were
carried out without obtaining registration from SEBI, it becomes necessary to issue
suitable directions in the interest of investors and the securities market.

10.

Further, in terms of Regulation 4(2)(t) of the SEBI (Prohibition of Fraudulent and

Unfair Trade Practices Relating to Securities Market) Regulations, 2003, dealing in
securities shall be deemed to be a fraudulent or an unfair trade practice if it involves
fraud and includes illegal mobilization of funds by sponsoring or causing to be
sponsored or carrying on or causing to be carried on any CIS by any person. This
provision in the above Regulations has been brought into effect from September 06,
2013. Accordingly, it could be held that by mobilizing public funds through CIS
without obtaining registration from SEBI as required under Section 12(1B) of the
SEBI Act read with Regulation 3 of the CIS Regulations, the Company has
contravened the above said provision and liable for action.

11.

The interim order with regard to the financial statements of the Company had observed
as under:
From the audited financial statements of the company for the FY 200910, 201011
and 201112, it is observed that the amounts mobilized from customers, cost of land
Page 10 of 14

purchased, development expenses etc. incurred by HNC, as stated in the relevant Balance
Sheet are as under:
(Amount in )

Advances from customers

Opening Stock (inventory)
Land at cost
Add: Land development expenses
Add: Stationery

As on
As on
As on
As on
March 31, 2010 March 31, 2011 March 31, 2012 March 31, 2013
7,67,800
1,71,17,614 2,90,68,098.50 4,11,52,879.25

Closing Stock (inventory)

Land at cost
Add: Land development expenses
Add: Stationery

0
0
0
0

0
0
0
0

5161141.00
7280732.95
35674.00
12477547.95

5161141.00
15224543.29
0
20385684.29

0
0
0
0

5161141.00
7280732.95
35674.00
12477547.95

5161141.00
15224543.29
0
20385684.29

5161141.00
24954868.84
0
30116009.84

*It is noted that in financial statements of 2010-11, the opening and closing stock are not
separately reflected in Schedules. However, profit & loss account shows change in stock
includes (a) Land purchase for Rs. 5161141/- and (b) Land development expenses for
7280733.75/-. The corresponding figure in profit & loss account for 2009-10, is nil.
From the above table (stock position), it is observed that the land purchased in 2010-11 is
continued to be reflected in financial statement as on March 31, 2013. This implies that
company has not allotted any land to its customers/investors from whom funds were
raised.
HNC in its reply dated September 04, 2014, has submitted that the allotment of land/
plot is not reflected in the balance sheet as the transfer of ownership happens after
receipt of the entire consideration amount and then only the Company will be in a
position to recognize the same as revenue.
I note from the interim order that the Company had 10,528 investors in its various
plans/ schemes offered by HNC and the total advance taken from the customers/
investors against land as on January 22, 2014, was 4,75,20,825.
12.

Liability of the Directors: I note that the interim order was issued against the
Company and its directors namely Mr. Santosh Kumar Saket, Mr. Ramnaresh Saket,
Mr. Ramadhar Choudhary and Mr. Satish Kumar Arya
The details of the appointment and resignations of the directors of the Company are
as under:
Name

Date of Appointment Date of Cession

Mr. Santosh Kumar Saket

04/07/2008

Page 11 of 14

23/12/2013

Mr. Ramnaresh Saket

Mr. Ramadhar Choudhary
Mr. Satish Kumar Arya

05/11/2009
29/10/2009
08/03/2010

From the available records, it is seen that the noticee namely Mr. Ramnaresh Saket,
Mr. Ramadhar Choudhary and Mr. Satish Kumar Arya are continuing as directors of
the Company. It is noted that the Mr. Santosh Kumar Saket had resigned from the
post held in the Company on December 23, 2013. I note that the resignation of Mr.
Santosh Kumar Saket does not absolve him from the charges levelled in the interim
order, in the light of the incorporation of the Company on November 23, 2006 and
the period during which he was the director of the Company moneys were collected.
Therefore, I have no hesitation in holding that the Company and its directors namely
Mr. Santosh Kumar Saket, Mr. Ramnaresh Saket, Mr. Ramadhar Choudhary and Mr.
Satish Kumar Arya were engaged in the illegal fund mobilising activity by floating/
sponsoring/ launching, unregistered/ unauthorised CIS, as defined in the Section
11AA of the SEBI Act. In view of the above findings and observations made in this
Order and the violations committed by the Company, it becomes necessary for SEBI
to issue appropriate directions in order to protect the interest of investors and also to
secure the interest of the securities market.
13.

In view of the observations made in this Order, I, in exercise of the powers conferred
upon me under Section 19 of the Securities and Exchange Board of India Act, 1992
and Sections 11(1), 11B and 11(4) thereof and Regulation 65 of the SEBI (Collective
Investment Schemes) Regulations, 1999, hereby issue the following directions:
a. HNC Infrastructures & Shares India Limited [PAN: AABCH9386E], Mr.
Santosh Kumar Saket [PAN: BVJPS1765D], Mr. Ramnaresh Saket [PAN:
CIMPS8022E], Mr. Ramadhar Choudhary [PAN: AMWPC8208N] and Mr.
Satish Kumar Arya [PAN: AREPA2954N] shall abstain from collecting any money
from the investors or launch or carry out any Collective Investment Schemes including
the scheme which have been identified as a Collective Investment Scheme in this
Order.
b. HNC Infrastructures & Shares India Limited, Mr. Ramnaresh Saket, Mr.
Ramadhar Choudhary and Mr. Satish Kumar Arya shall wind up the existing
Page 12 of 14

Collective Investment Schemes and refund the money collected by the said company
under the schemes with returns which are due to its investors as per the terms of offer
within a period of three months from the date of this Order and thereafter within a
period of fifteen days, submit a winding up and repayment report to SEBI in
accordance with the SEBI (Collective Investment Schemes) Regulations, 1999,
including the trail of funds claimed to be refunded, bank account statements indicating
refund to the investors and receipt from the investors acknowledging such refunds.
c. HNC Infrastructures & Shares India Limited, Mr. Ramnaresh Saket, Mr.
Ramadhar Choudhary and Mr. Satish Kumar Arya shall not alienate or dispose off
or sell any of the assets of HNC Infrastructures & Shares India Limited except
for the purpose of making refunds to its investors as directed above.
d. HNC Infrastructures & Shares India Limited, Mr. Santosh Kumar Saket, Mr.
Ramnaresh Saket, Mr. Ramadhar Choudhary and Mr. Satish Kumar Arya are
directed to provide a full inventory of all their assets and properties and details of all
their bank accounts, demat accounts and holdings of shares/ securities, if held in
physical form.
e. HNC Infrastructures & Shares India Limited, Mr. Santosh Kumar Saket, Mr.
Ramnaresh Saket, Mr. Ramadhar Choudhary and Mr. Satish Kumar Arya are
restrained from accessing the securities market and are prohibited from buying, selling
or otherwise dealing in securities market for a period of four years.
f. In the event of failure by HNC Infrastructures & Shares India Limited, Mr.
Santosh Kumar Saket, Mr. Ramnaresh Saket, Mr. Ramadhar Choudhary and
Mr. Satish Kumar Arya, to comply with the above directions, the following actions
shall follow:
- HNC Infrastructures & Shares India Limited, Mr. Santosh Kumar Saket, Mr.
Ramnaresh Saket, Mr. Ramadhar Choudhary and Mr. Satish Kumar Arya shall
remain restrained from accessing the securities market and would further be
prohibited from buying, selling or otherwise dealing in securities, even after the
period of four years of restraint imposed in paragraph 13(e) above, till all the
Collective Investment Schemes of HNC Infrastructures & Shares India Limited

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are wound up and all the monies mobilized through such schemes are refunded to
its investors with returns which are due to them.
- SEBI would make a reference to the State Government/ Local Police to register a
civil/ criminal case against HNC Infrastructures & Shares India Limited, its
promoters, directors and its managers/ persons in-charge of the business and its
schemes, for offences of fraud, cheating, criminal breach of trust and
misappropriation of public funds; and
- SEBI would make a reference to the Ministry of Corporate Affairs, to initiate the
process of winding up of the company, HNC Infrastructures & Shares India
Limited.
- SEBI shall initiate attachment and recovery proceedings under the SEBI Act and
rules and regulations framed thereunder.
14.

This order shall come into force with immediate effect.

15.

This Order shall be without prejudice to thpe right of SEBI to initiate prosecution
proceedings under Section 24 and adjudication proceedings under Chapter VIA of the
Securities and Exchange Board of India Act, 1992 against HNC Infrastructures &
Shares India Limited, Mr. Santosh Kumar Saket, Mr. Ramnaresh Saket, Mr.
Ramadhar Choudhary and Mr. Satish Kumar Arya, including other persons who
are in default, for the violations as found in this Order.

16.

Copy of this Order shall be forwarded to the stock exchanges and depositories for
necessary action.

Date: January 08, 2016

Place: Mumbai

PRASHANT SARAN
WHOLE TIME MEMBER
SECURITIES AND EXCHANGE BOARD OF INDIA

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