Press Release
April 27, 1998
Ref.No.PR 91/98 
 
 
SEBI ISSUES SHOW CAUSE NOTICES TO 11 PLANTATION COMPANIES
 
 Primary Market Department
 
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SEBI is in the process of framing the regulations for collective investment schemes. It had been decided to undertake a special audit of 50 entities which are operating collective investment schemes. Reputed chartered accountants have been engaged for the purpose and their reports are being received. This audit is expected to give an insight into the financial affairs of these entities and the application of accounting principles by them. 

Some of the entities have refused to cooperate in the process of audit and SEBI is contemplating action against these entities including barring them from accessing public funds and also, in appropriate cases, initiating prosecution against them for non compliance with SEBI’s directions. 

SEBI has issued Show cause notices to the following entities: 

  1. Helios Plantation & Developers Ltd., Mumbai, Maharashta
  2. Arrow Global Agrotech Ltd., Mumbai, Maharashtra 
  3. DSJ Agrotech Ltd., Mumbai, Maharashtra
  4. Vijetha Agro Farms India Ltd., Guntur, A.P.
  5. Pagoda Forests Ltd., Mumbai, Maharashtra 
  6. Green Gold Horticulture Ltd., Mumbai, Maharashtra
  7. Surbhi Forests (INDIA) Ltd., Chandigarh
  8. Vasundhra Marin Products Ltd., Gorakhpur, U.P.
  9. SPG Green Gold Plantations Ltd., New Delhi
  10. Advantage Agro India Ltd., Lucknow, U.P.
  11. Young Farmers Forests Ltd., Chandigarh
These entities have been asked to explain why action should not be taken against them for failure to cooperate with the auditors. On the basis of the reply received from these entities and the reports of the auditors, further action would be initiated. 

SEBI is also in the process of identifying those entities which continue to operate collective investment schemes without filing information with SEBI. A public notice has been issued to caution the investors against these entities. Members of the public have been advised to bring to the notice of SEBI, the names of companies/persons who are collecting or mobilising money from the public in contravention of the directions issued by SEBI, so that appropriate action can be initiated against these entities. 

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