KALPTARU AGRO LTD. Vs. SEBI

JUDGEMENT

(1.) The petitioners are aggrieved by the order dated 6.9.2011 passed by the learned ASJ-01/Central/Delhi in CC No.16/2010 whereby acting on an application preferred by the respondent, SEBI under Section 216 of the Code of Criminal Procedure, the learned Court below has converted the case, which was being tried as summons case, into a warrant case.

(2.) In order to appreciate the contention of the parties, it is necessary first to refer to the complaint lodged by the respondent, SEBI. The complaint alleged that accused no.1 (petitioner no.1) ran a collective investment scheme and raised an aggregate amount of Rs.7.04 crores from the general public. Pursuant to SEBI press release dated 26th November, 1997 and public notice dated December 18, 1997, the petitioner company filed information/details with the SEBI (respondent) regarding the scheme.

(3.) It has been averred that in terms of Chapter IX of the SEBI (Collective Investment Schemes) Regulation 1999, any person who had been operating a collective investment scheme at the time of commencement of said regulation would be deemed to be an existing collective investment scheme and would be required to comply with the provisions of Chapter IX. An application was required to be made to the SEBI for grant of registration within a period of two months from the date of notification of the said regulation.