Shilpa Shah and Madhu Murthy, received a second consecutive favourable order for their client Nikhara Bharath Construction Co. Ltd. (NBCCL) before SEBI Mumbai in a matter pertaining to alleging violation of its interim order wherein it had restrained NBCCL from carrying out its business activities, had initiated enquiry against the directors of NBCCL. In spite of stay against carrying out operations in any scheme, our client had sold several plots, which details found out by during Investigation. We filed detailed reply for NBCCL & represented NBCCL in adjudication proceedings contending amongst other grounds that it had not sold any plot as part of the scheme and since parallel proceedings alleging Collective Investment Scheme (CIS) was pending & decision in this matter should be subject to the final outcome initiated alleging CIS. The adjudicating officer has considered the same & dropped the proceedings against the directors holding that the same does not survive for consideration in view of the decision that NBCCL does not come within the definition of CIS.
This again comes as a big relief for client as the charges were in the nature of contempt which would have attracted huge penalty of Rs.1 Crore.