Delhi Court fines plantation company for flouting SEBI norms

A plantation company and its two directors have been slapped with a fine of Rs 2.2500000 by a Delhi court for collecting a huge sum of money from the public, promising them high returns, without prior SEBI permission.Additional Sessions Judge Pawan Kumar Jain fined Yojna Agro Forestry Limited , a firm among hundreds of collective investment companies (CIS) on a complaint by market watchdog Securities and Exchange Board of India (SEBI) to prosecute the plantation company for not getting prior certificate from it as prescribed by the SEBI Act.SEBI had alleged "the company had floated the CIS and mobilised0000000 of rupees from general public, in violation of the provisions of the SEBI Act which stipulates prior SEBI approval of such schemes".ASJ Jain imposed the fine after convicting the firm and two of its promoters. "Ends of justice will be met if convicts are burdened with the fine of Rs. 75,000 each upon Yojna Agro Forestry Limited and it directors, Mukul C Aggarwal and Gopal Dutt, in default of which they will undergo three months simple imprisonment," the court said.