9911796707
TMI Blog2013 (8) TMI 1066X X X X Extracts X X X X X X X X Extracts X X X X ..... earned Addl. Senior Government Advocate, appearing on behalf of the respondent Nos. 1 to 10. We have also heard Ms. B. Das, learned Central Government counsel, appearing for the respondent No. 11. Issue notice of motion making the same returnable on 20.08.2013. No formal notice is required to be issued to the respondent Nos. 1 to 11, as they have already entered appearance and accepted notice through their respective counsel. However, extra copies of the writ petition and annexure(s) thereto shall be served to the learned counsel for the respondent Nos. 1 to 11. Issue notice to the respondent Nos. 12 and 13 by registered post, with A/D, as well as by ordinary process. Necessary steps shall be taken within 2 (two) days from today. Heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Collective Investment Scheme or not. Considering the fact, as already indicated above, that the impugned order, passed by SEBI, substantially rests on, or derives strength from, the letter, dated 20.06.2012, issued by the respondent No. 3, addressed to SEBI (which, in turn, stands impleaded as respondent No. 12), it follows that so far as the respondent No. 3 is concerned, it has not, at this stage, been able to show, even prima facie, that the business of the petitioners falls within the meaning of the expression Collective Investment Scheme, though respondent No. 3 had sought for interference of the SEBI with the business of the petitioners. This apart, the impugned order, dated 11.07.2013, passed by SEBI, shows that even SEBI has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anwhile, issued directions restraining the petitioners from collecting any money from investors, including under the existing schemes, not to launch any new schemes, not to dispose of any of the properties or alienate any of the assets of the schemes and not to divert any funds raised form public at large, which are kept in the bank accounts/custody of the company and, thus, pending decision on the said show cause notice, no such order, as stands impugned in this writ petition, can be legally made by SEBI, we do not, at this stage, express any definite opinion that it is wholly impermissible for SEBI to pass any restrain order, under Regulation 65, pending an inquiry. What is, however, important to note is that we are prima facie of the vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entirety and in the interest of justice, it is hereby directed, as an interim measure, that, until returnable date, the operation/execution of the directions, contained in Clauses (a) and (d) of paragraph 10 of the impugned order, dated 11.07.2013, shall remain suspended and, while the petitioners shall not divert the fund, they shall remain free to operate their bank accounts. As we have suspended the SEBI's direction given to the petitioners not to collect any more money from investors under the existing schemes, we hereby also direct, as an interim measure, that, until returnable date, the record of the collections of money, which may be made by the petitioners, shall be maintained separately so that the collection of money, which m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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