KANWAL PRAKASH SINGH Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) Both the revisional applications under Sec. 397, 401 of the Code of Criminal Procedure 1973, read with sec. 26C of Securities and Exchange Board of India Act, 1992 stem out from the impugned order dtd. 20/8/2018 passed by Learned Judge, 5th Special Court, Calcutta in Special Case No. 18 of 2016 (SEBI/16/17), whereby the applications filed by the petitioners for their discharge under sec. 245 of Cr. P.C were rejected, imposing a cost of Rs.2,000.00. By these applications legality and propriety of the order has been challenged praying for setting aside the order and quashing of the proceeding against the petitioners.

(2.) The fact of the case, in gist is that, the petitioners are three of the directors of the accused company, M/s Just Reliable Projects India Limited, which was incorporated on 16/12/2009 under the Companies Act, 1956, having its registered office at C-19, Uday Shankar Bithi, City Centre, Durgapur-713216.

(3.) A duty having been cast upon SEBI under sec. 11(1) of the SEBI Act to protect the interests of investors in Securities and to promote the development of and regulate the securities market through appropriate measures, the Securities Exchange Board of India conducted an enquiry in respect of alleged illegal fund mobilization by the accused company and its directors. It came to light that during the financial year 2010-2013, M/S Just-Reliable Projects India Limited had raised an amount of Rs.11.426 Crores through issuance of redeemable preference shares to 3,558 entities without complying with the regulatory provisions applicable to the public issue norms.