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SEBI bars Basil Int'l from raising funds from public

India Infoline News Service | Mumbai |

The order is against directors including Satya Narayan Karmakar, Sourindra Nath Mukherjee, Biplab Talukdar and Manindra Kumar Basu

Securities and Exchange Board of India (SEBI) barred Kolkata-based Basil International as well as its promoters and directors from raising money from the public.

In its order, SEBI has also directed that Basil International should not dispose of any of its assets without the regulator's permission. Also, the company has been asked not to divert any funds raised from public at large kept in its custody.
The order is against directors including Satya Narayan Karmakar, Sourindra Nath Mukherjee, Biplab Talukdar and Manindra Kumar Basu.

SEBI received a complaint—dated 23.6.2011 from the Directorate of Income Tax (Investigation), Kolkata—against BIL wherein, it was stated that, the said office had carried out a search operation at BIL’s office in Asansol and it had found out that BIL was engaged in the business of taking deposits under the garb of redeemable preference shares from rural people promising them returns ranging from 11%-14% and was utilising such proceeds in paying huge commission to its agents, investing in its business assets, fixed deposits and siphoning off the funds as cash. Hence, the company was stated to be running a ponzi scheme where liability was being met through deposits.

Accordingly, information was sought from BIL on July 18, 2011 about its scheme(s) and plan(s). The letter was returned undelivered with remarks that the company had left the premises, the SEBI order said on Thursday.
Information was also sought from the Registrar of Companies (ROC) Delhi vide letter dated August 8, 2011.

SEBI conducted a physical inspection at the registered office address and other office addresses of BIL on November 11, 2011 and November 18, 2011 in Delhi. It was found that BIL did not exist at any of the said addresses.

"Non-compliance and non-cooperation by BIL in submitting information to SEBI, no prospectus having been filed by BIL with the RoC and complaints received against BIL also indicate that BIL is attempting to conceal information about offer size and other essential details in order to avoid compliance with company law and securities law," the order said.
 

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