Anubhav Investors Association v. Securities And Exchange Board

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 13.06.2018

CORAM

THE HONOURABLE MR.JUSTICE P.D.AUDIKESAVALU W.P.No.6879 of 1999 and W.P.M.P.Nos.9940 to 9943, 9946 & 9947 of 1999 Anubhav Investors Association-India Represented by its Vice-President Bakul Shah ... Petitioner Vs.

1. Securities and Exchange Board of India (SEBI) Constituted under the Securities and Exchange Board Act, 1993 Having its Registered Office at Mittal Court 'B' Wing, 224, Nariman Point Mumbai 400 021.

2. The Regional Director Southern Region Department of Company Affairs Ministry of Finance Government of India at Shastri Bhavan, Block 1 V Floor, 26, Haddows Road Chennai 600 006.

3. Reserve Bank of India Constituted under the RBI Act 1934 having its office at Mint Road Mumbai.

4. The Secretary Ministry of Law & Company Affairs Government of India, Shastri Bhavan New Delhi.

5. The Secretary Ministry of Finance Government of India North Block, New Delhi.

6. Commissioner of Police Police Commissioner's Office Egmore, Chennai 600 008.

7. Central Bureau of Investigation Represented by its Superintendent of Police, 'Rajaji Bhavan'

Chennai 600 090.

8. Duff & Phelps Credit Rating India Private Ltd., F4, Akshaya Plaza 55/56, Adithanar Salai Chennai 600 002.

9. Anubhav Group of Companies Rep by its Chairman-cum- Managing Director, C.Natesan No.11, Somasundaram Street T.Nagar, Chennai - 600 017.

10. C.Natesan Chairman and Managing Director Anubhav Group of Companies 7, Justice Jambulingam Street Dr.Radhakrishnan Salai Chennai - 600 004.

11.Shri.T.V.Giri Rao 12.Shri.P.R.Balasubramanian 13.Mr.AL.S.Kannappan 14.Mr.V.Babu 15.Shri.U.H.Narayanan 16.Shri P.Govindarajan 17.Shri.Vithu Bhai Patel 18.Shri C.Srikrishna 19.Shri S.S.R.Elangovan 20.Shri S.S.R.Kalaivanan 21.Mullai Subbiah 22.S.Subramani 23.P.Raman Balasubramanian 24.Avadaiyappan Sankaralingam 25.Krishna Subramanian 26.Subramani Balasubramani 27.Sali Venkateswara Subarayan 28.A.Lakshman Srinivas 29.N.Subramani 30.A.L.Srinivas 31.M.Shanmugasundaram 32.A.Sivalingam 33.Dr.K.Sunitha

34.Jandhyalaya Narayan 35.S.Srinivasa Rao 36.R.Varadarajan ... Respondents Prayer : Writ Petition filed under Article 226 of the Constitution of India, to issue a Writ of Mandamus, directing the respondent No.1 to respondent No.5 to appoint an authority to salvage the investment of the members of the petitioner Association in the Anubhav Group of Companies, Respondent No.9 and to evolve a package for salvaging the invested amounts; and to take action within a certain time frame against the respondent No.10 to respondent No.36 who have siphoned off the investment collected by them and take all necessary measures to ensure refund of investment of innocent investors, the members of the petitioner association; and further direct the investigation of the case registered in crime No.

1431/98 on the file of the Central Crime Branch, Egmore, Chennai be further investigated by the C.B.I. the Respondent No.7; and also direct the respondent No.1 (SEBI) to submit before this Hon'ble Court details of the Management, Directors and Financial operations till 31.12.1998 of the Respondent No.9 to Respondent No.36 in respect to (a) details of deployment of funds which were collected by Respondent No.9 from investors; (b)details of the assets and liabilities of the said company (Respondent No.9). For Petitioner : No appearance For Respondents : M/s.Krishna Ravindran For Amicus Curie M/s.

O R D E R

In this writ petition, the petitioner has sought for the relief of directing the respondent No.1 to respondent No.5 to appoint an authority to salvage the investment of the members of the petitioner Association in the Anubhav Group of Companies, Respondent No.9 and to evolve a package for salvaging the invested amounts; and to take action within a certain time frame against the respondent No.10 to respondent No.36 who have siphoned off the investment collected by them and take all necessary measures to ensure refund of investment of innocent investors, the members of the petitioner association; and further direct the investigation of the case registered in crime No.1431/98 on the file of the Central Crime Branch, Egmore, Chennai be further investigated by the C.B.I. the Respondent No.7; and also direct the respondent No.1 (SEBI) to submit before this Hon'ble Court details of the Management, Directors and Financial operations till 31.12.1998 of the Respondent No.9

to Respondent No.36 in respect to (a) details of deployment of funds which were collected by Respondent No.9 from investors; (b)details of the assets and liabilities of the said company (Respondent No.9).

2.This court by order dated 13.12.2017 on finding that the case records were not available, had directed for reconstruction of records by obtaining copies of the papers from the learned Senior Central Government Standing Counsel.

3.Mr.Krishna Ravindran, who is appointed as Amicus Curie in the matter by this court, has filed a status report dated 13.06.2018 along with certain earlier orders passed by this court in connected proceedings, and has set out the sequence of events resulting in the liquidation of Anubhav group of companies. In paragraph No.9 of the status report, it has been stated as follows:

"9.It is pertinent to state here that if any investors/depositors who have not filed their claim can always approach the Hon'ble Madras High Court regarding return of their invested amounts. In view of the order directing payment of interest on the deposits to the investors/depositors, it is clear that the official liquidator who is looking after the affairs of the company in liquidation has got sufficient money to refund the money invested by them. Hence it is for the claimants who have not filed their claims to approach the Hon'ble Madras High Court and the Official Liquidator, High Court, Madras regarding their invested money."

In view of the same, it would follow that if any of the members of the petitioner's association have any claim against the Anubhav Group of Companies, it is open to them to work out their remedy in appropriate proceedings and nothing remains for adjudication in this writ petition.

4.Recording the same, this writ petition stands disposed of. Consequently, connected miscellaneous petitions are closed. No costs.

Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrar

maya To

1. Commissioner of Police Police Commissioner's Office Egmore, Chennai 600 008.

2. The Superintendent, Central Bureau of Investigation of Police, 'Rajaji Bhavan'

Chennai 600 090.

W.P.No.6879 of 1999 KJI (CO) BM 12/07/2018