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TMI Blog1998 (6) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... pt small investors to deposit or invest their life-savings in such companies promis-ing to pay fanciful returns on their investment but actually defrauding the investors after siphoning off large amounts from such investments. It is also unfortunate that Nationalised Banks are also advancing loans to such institutions without adequate security from such companies as well as their Directors. The situation on the whole, prima facie, is not very happy and knowing fully well the parameters of the powers of the Court as well as the self-imposed restrictions under article 226 of the Constitution, we, the Courts, cannot be silent spectators to such piquant situations. 4. This petition is filed by the Securities & Exchange Board of India (SEBI) as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (XIII) Greenshare Dhansamruddhi - 4 (XIV) Greenshare Dhansamruddhi - 5 (XV)Greenshare Dhansamruddhi - 6 (XVI)Greenshare Vegetable Unit (XVII)Aanokhe Aam Scheme 6. It has been pointed out that the petitioner has recently come across a press report in Bombay TIMES OF INDIA dated 17-5-1998 that promoters of the schemes of respondent No. 1 were not traceable, respondent No. 1 has downed its shutters, the owners were not available, various offices of respondent No. 1 are closed and the said company was going through financial crises. It is submitted that the funds received by respondent No. 1 had been diverted to other companies. It is submitted that in collusion an order has been obtained from this Court in Company Petition No. 226 of 1998 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who have siphoned off large amounts of investors under the guise of corporate veil. 7. Prima facie, it appears that respondent No. 1 and such other companies, which are mushrooming in the country under the corporate veil, are committing fraud by tempting middle-class persons to invest their life- long savings in the high hope of having fanciful returns, without there being any basis. Further, in agricultural production, this type of high returns are impossibility in this country, where, otherwise, the farmers of this country would have become multi-millionaires by this time. It appears that, because of these empty, false promises, investors are duped and the company's monies are siphoned off either to sister-companies or firms of the Dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... porate bodies are merely cloaks behind which lurks Tejwant Singh and/or members of his family and that the device of incorporation was really a ploy adopted for committing illegalities and/or to defraud people." The Court has also held that the absence of a statutory provision will not inhibit the Court (as the Court was exercising power under article 142 of the Constitution) while acting under the said article from making appro-priate orders for doing complete justice between the parties. The Court has also observed that in India, the Courts are not only Courts of law, but also the Courts of equity and thereafter passed an appropriate order attaching certain properties of the Directors of the company in the aforesaid case. 9. In our view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and the particulars thereof, including the names and addresses of the banks and the amounts therein. (e)Respondent Nos. 2 to 5 and 7 are directed to furnish a list of the group companies and indicate the amounts/assets, whether movable or immovable, transferred from respondent No. 1 to its group companies or any other companies in which respondents Nos. 2 to 5 and 7 are directors or shareholders; (f)Respondent No. 6 is directed to write to all scheduled and comme-rcial banks intimating the present order and not to permit respon- dents Nos. 1 to 5 and 7 or the group companies of respondent No. 1 (mentioned at page 81 of the petition) to operate their respective bank accounts; (g)The Deputy Commissioner of Police is further directed to f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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