9911796707
TMI Blog1998 (11) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... es and other Schemes floated by Plantation Companies promising unreasonably high returns on their investments. One of the prayers which is sought in the Petition is that the State Government be directed to forthwith promulgate an Investor Protection Act as was done by the State Governments of Tamil Nadu and Goa. 3. It is the contention of the petitioners that there are approximately 3,599 plantation companies which have succeeded in attracting deposits and/ or funds to the extent of approximately 25,000 crores. The Petitioners have furnished instances of at least 5 plantation companies which, after promising unconscionably high returns, and after collecting large amount of funds from the depositors, are either not holding plots of land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estors, we passed an interim Order on 11-6-1998 by which it was clarified that it would be open for SEBI to issue an advertisement in the newspapers cautioning investors against depo-siting/investing any amount in such plantation companies. It was further clarified that such advertisement shall state that hereafter any such investment schemes, including Plantation Schemes, shall not issue any advertisement inviting investment/deposits in the scheme or the com- pany until and unless the advertisement carries, in a prominent manner a credit rating from an Accredited Rating Agency along with the meaning of the Rating assigned to the schemes of the company. It was also directed that the advertisement shall conform to the rules/guidelines issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... companies, made a statement before us that respondent No. 11 would issue an advertisement in leading newspapers cautioning the investors to make proper inquiries before investing in agro-plantation companies so that they can differentiate between genuine and non-genuine plantation companies. This statement was recorded by us in our Order dated 17-8-1998 and came to be implemented soon thereafter by publishing a notice in THE ECONOMIC TIMES, Delhi. On a representation made by the learned Counsel for the respondents as well as SEBI, at the hearing held before us on 17-8-1998, that the publication of the advertise-ment in THE ECONOMIC TIMES was not likely to serve any purpose because the readers of THE ECONOMIC TIMES are already well-versed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te action be taken in accordance with the Maharashtra Land Revenue Code, Bombay Tenancy and Agricultural Land Act and other allied Acts before mutation entries are made on the basis of so-called transfer of agricultural lands. 10. In two or three matters, at the request of the learned Counsel for SEBI and Reserve Bank of India, orders were passed, stating that there was immediate need of a legislation to protect such investors when the matter came up before us on 3-11-1998, the learned Advocate-General appearing for the State of Maharashtra made a statement that within a few days from that date, the State of Maharashtra would pass an appropriate legislation to protect the interest of depositors/investors/shareholders who had invested in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by them would be at their own risk because such companies are unlikely to achieve their objective and meet their liabilities. 11. At the time of hearing, the learned Counsel appearing on behalf of the Association of Plantation Companies submitted that at present, in this country, there is no appropriate law regulating such Plantation Compa- nies. He further relied upon section 34 of the SEBI Act, which empowers the Central Government to make necessary provisions to remove difficult-ties. He submitted that neither the Union Government, nor the Ministry of Finance, nor SEBI has taken appropriate action on the basis of the said Act or provisions of the Reserve Bank of India Act, 1934 or the Companies Act. It is true that, because promp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocate-General before us, we dispose of the present Petition by rejecting the same, without passing any further order or directions, save and except that, until the Ordinance is promulgated, the interim Orders dated 2-6-1998 and 17-8-1998 regarding publication of advertisement as well as issuance of notice to all concerned, including Land Revenue Authorities, in respect of transfer of agricultural land in favour of plantation companies shall continue. 15. We were informed that SEBI had constituted a Committee under the chairmanship of Dr. S.K. Dave for drafting Regulations in respect of such collective investment schemes. The said Committee has submitted its report. In the event of it being found that the Ordinance promulgated by the Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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