MAHAKAUSHAL AGROTECH LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) By the present application the applicant is seeking quashing of the proceedings initiated against it and pending on the file of the Special Judge, Kurla, Mumbai.

(2.) The applicant is a Public Limited company incorporated under the provisions of the Companies Act, 1956, having its registered office at Bhopal. The main object of the applicant company was to carry on the business of plantations. The Respondent No. 2- S. E. B. I. came into existence through the securities and Exchange Board of India Act, 1992 on 4th April, 1992. The object of the said act was to protect the interest of the investors in securities and to regulate the securities market and the matters connected therewith or incidental thereto.

(3.) The SEBI - Respondent No. 2 filed a complaint against the present applicant for commission of an offence under Section 24 read with Regulation 73. It is pertinent to note that the Regulations have been framed and have come into force with effect from 15th October 1999. The applicant is said to have collected money in the year 1997 from eight investors aggregating to Rs. 2. 5 lakhs. It is the case of the applicant that the scheme was wound up in the year 1998 itself and the entire amounts collected from the investors, who are eight in number, were returned to them. The affidavits of said eight persons are also filed on record which indicate the repayment of the amounts invested by the investors.