Rose Valleys plea against Sebi thrown out by SC

Written by Indu Bhan | Indu Bhan | New Delhi | Updated: Jul 24 2012, 08:56am hrs
The Supreme Court on Monday dismissed Bengal-based Rose Valley Real Estates' plea requesting recall of its earlier order that could have allowed the Calcutta High Court to vacate stay on Sebi proceedings against the company.

Sebi had in its January 3, 2011, order directed Rose Valley not to collect any money from investors or to launch any scheme, not to dispose of any of the properties or delineate assets of the schemes and not to divert any fund raised from public at large kept in bank account and or at the custody of the company. The company had been raising funds since 1997 from the public in certain areas of Bengal in the name of the sale of plots of land under its Ashirbad scheme. Sebi claimed that Rose Valley had collected R1,271.98 crore till March 2010.

A Bench headed by Chief Justice SH Kapadia refused to recall its order of July 2 that asked the Calcutta High Court to take up its petition on the issue within two weeks or at least consider vacating the interim relief, particularly, in view of the fact that the respondents (Rose Valley) continue to invite deposits which may ultimately create difficulties as the clock cannot be turned back in future. The HC, in its August 2010 interim order, had directed Sebi not to take any coercive steps against the company under the Sebi (Collective Investment Scheme) Regulations, 1999 till the disposal of the matter.

The apex court bench said that "on principle it is not vague... Its just that during pendency of the petition you want to collect money... Give an undertaking that Ashirbad scheme will remain suspended till the disposal of your plea."