WTM/PS/22/EFD/MAY/2016

BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA

CORAM: PRASHANT SARAN, WHOLE TIME MEMBER
ORDER
Under Sections 11(1), 11(4) and 11B of the Securities and Exchange Board of India Act,
1992 read with Regulation 65 of the SEBI (Collective Investment Schemes) Regulations,
1999
In the matter of Swar Agrotech India Limited
In respect of:
1. Swar Agrotech India Limited [CIN: U01403UP2012PLC048364],
2. Mr. Rajesh Awasthi [PAN: AGMPA1004E],
3. Mr. Pravesh Kumar Karowliya [PAN: ATSPK4627Q; DIN: 02104180],
4. Mr. Rohit Gupta [PAN: APBPG3984P] and
5. Mr. Shiv Kumar [PAN: BLGPK9508K]
___________________________________________________________________________
Date of Hearing:
Appearances:

August 07, 2015

Mr. Rohit Gupta appeared in-person

For SEBI:

Mr. Pradeep Kumar, Assistant General Manager and Mr. Ankit Bhansali,
Assistant General Manager

Date of Hearing:
Appearances:

November 17, 2015

Mr. Maneesh Kumar, Chartered Accountant appeared for Mr. Rajesh
Awasthi

For SEBI:

Mr. Pradeep Kumar, Assistant General Manager and Mr. Abhiraj Arora,
Manager
___________________________________________________________________________
1.

Securities and Exchange Board of India (hereinafter referred to as SEBI) conducted a

preliminary inquiry in the investment scheme of one Swar Agrotech India Limited
(hereinafter referred to as the Company or Swar Agrotech). Pursuant to the inquiry,
SEBI vide an ex-parte interim Order dated March 30, 2015 (hereinafter referred to as the
interim order), prima facie found that Swar Agrotech is engaged in fund mobilizing activities
from the public, which falls within the ambit of Collective Investment Scheme (hereinafter
referred to as CIS) as defined under Section 11AA of the Securities and Exchange Board
of India Act, 1992 (hereinafter referred to as the SEBI Act), without obtaining a
certificate of registration from SEBI as required under Section 12(1B) of the SEBI Act
and Regulation 3 of the SEBI (Collective Investment Schemes) Regulations, 1999
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(hereinafter referred to as the CIS Regulations). The mobilization of funds by Swar

Agrotech through its schemes, was also prima facie found to be a fraudulent practice in
terms of Regulation 4(2)(t) of the SEBI (Prohibition of Fraudulent and Unfair Trade
Practice Relating to Securities Market) Regulations, 2003 (hereinafter referred to as
PFUTP Regulations).
2.

The interim order was issued in order to protect the interest of investors, to ensure that the
Company and its directors do not collect further funds under its schemes and to safeguard
the assets/ acquired by Swar Agrotech and its directors from the funds of the investing
public. This Order directed Swar Agrotech and its directors, namely, Mr. Rajesh Awasthi,
Mr. Pravesh Kumar Karowliya, Mr. Rohit Gupta and Mr. Shiv Kumar (hereinafter
collectively referred to as noticees):
i. not to collect any fresh money from investors under its existing schemes;
ii. not to launch any new schemes or plans or float any new companies to raise fresh moneys;
iii. to immediately submit the full inventory of the assets including land obtained through money
raised by Swar Agrotech;
iv. not to dispose of or alienate any of the properties/assets obtained directly or indirectly through
money raised by Swar Agrotech;
v. not to divert any funds raised from public at large which are kept in bank account(s) and/or
in the custody of Swar Agrotech;
vi. to furnish all the information/details sought by SEBI within 15 days from the date of receipt
of this order, including,
Details of amount mobilized till date,
Scheme wise list of investors and their contact numbers and addresses,
Details of investors repaid,
Details of charges, if any, created on its assets by the company,
Details of commission paid on amounts mobilized above,
Details of agents along with their addresses, etc., and
Audited Accounts for the last financial year.

3.

The aforesaid directions came into force with immediate effect and the noticees were
advised to file their reply within a period of twenty one (21) days from the date of receipt
of the interim order and also to indicate whether they wish to avail an opportunity of
personal hearing in the matter.

4.

The interim order was forwarded to the Company and its directors vide letters dated April
13, 2015, which was duly delivered to all the noticees. Thereafter, an opportunity of
personal hearing was afforded to the Company and its directors on August 07, 2015 and
the same was communicated to the noticees vide SEBI letter dated July 24, 2015. On the

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date fixed, the noticee namely Mr. Rohit Gupta appeared and made oral submissions. He
also gave the written submissions dated August 07, 2015, which were taken on record.
Vide the said letter, he also provided the contact details of the Company and Mr. Rajesh
Awasthi, Mr. Shiv Kumar and Mr. Pravesh Kumar Karowliya. During the course of
personal hearing, Mr. Rohit Gupta was also granted liberty to submit the written
submissions, within a period of seven days, from the date of personal hearing. However,
till date no submissions have been filed by him.
5.

As other noticees had failed to appear for the personal hearing, one further opportunity
of personal hearing was granted to the noticees on October 05, 2015. On the date fixed,
none of the noticees had turned up. In the meantime, one Mr. Manish Kumar, Chartered
Accountant while talking on the telephone on behalf of the Company and one of its
directors namely Mr. Rajesh Awasthi requested for an adjournment of the personal
hearing. In the interest of justice, another opportunity of personal hearing was granted on
November 17, 2015. On the date fixed, Mr. Manish Kumar, Chartered Accountant
appeared only for Mr. Rajesh Awasthi and made oral submissions. He also requested time
for submitting the written submissions. The request was considered and he was granted
liberty to file the written submissions, within a period of ten days, from the date of personal
hearing. However, till date no submissions have been filed by him.

6.

The submissions of Mr. Rohit Gupta made vide letter dated August 07, 2015, in brief, are
as under:
a. He was director of the Company during the period of February 16, 2012 to September 14,
2013. Since September 14, 2013, he has no relation with the Company.
b. During February 16, 2012 to September 13, 2013, the Company had collected around 80
lakh and had also purchased three properties of around the same value.
c. Since September 14, 2013, the records of the Company are with Mr. Rajesh Awasthi, Mr.
Shiv Kumar and Mr. Pravesh Kumar Karowliya.

7.

While proceeding further with the matter, I have considered the interim order, the reply of
Mr. Rohit Gupta and the material available on record. The interim order has alleged that
the plans/ schemes operated by the Company are in the nature of CIS and that the
Company was offering these schemes without obtaining the registration from SEBI, in
contravention of the provisions of Section 12(1B) of the SEBI Act and Regulation 3 of

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the CIS Regulations read with Section 11AA of the SEBI Act. The directors of Swar
Agrotech were also alleged to be responsible for the illegal conduct of the business of the
Company. The interim order has noted the features of the alleged scheme offered by the
Company. The following are the observations from the interim order:
a. Swar Agrotech India Limited (CIN:U01403UP2012PLC048364) was incorporated on
January 16, 2012 having its registered office at Shastri Chauraha, Near Hero Honda Showroom,
Etawah - 206001 (UP). Mr. Rajesh Awasthi, Mr. Pravesh Kumar Karowliya, Mr. Rohit Gupta
and Mr. Shiv Kumar are the Directors of Swar Agrotech.
b. The main objects of Swar Agrotech as per the MoA is "to purchase acquire, take on lease or in
exchange or any other such lawful manner any area, land, building, structures and turn the same
into account to develop the same, and dispose of or maintain the same and to build townships,
markets, or such other building or conveniences thereon and to equip the same or any part thereof
with all or any amenities or conveniences, such as drainage facilities, electric and to deal with the
same in any manner.
a. I note from the interim order that the Company had mainly two plans i.e. Installment
Payment Plan and One Time Payment Plan. The sample of the plans offered by the
Company, as also noted in the interim order, is as under:
S.No. No. of Installment
Units
( )
1
2
3
4
5
6

0.25
0.50
0.75
1.00
1.25
1.50

3,000
6,000
9,000
12,000
15,000
18,000

One Time Payment Plans

Expected return of Installment
Accidental
75
126
180
216
240 Risk Cover
Months Months Months Months Months
6,000
12,000
18,000
30,000
42,000
3,000
12,000
24,000
36,000
60,000
84,000
6,000
18,000
36,000
54,000
90,000 1,26,000
9,000
24,000
48,000
72,000 1,20,000 1,68,000
12,000
30,000
60,000
90,000 1,50,000 2,10,000
15,000
36,000
72,000 108,000 1,80,000 2,52,000
18,000
MT-36

S.No. No. of Installment Amounts

Units Mly. Qly. Hly.
1
2
3
4
5
6

1.5
3.00
4.50
6.00
7.50
9.00

500
1,000
1,500
2,000
2,500
3,000

Yly.

1,485 2,955 5,880

2,970 5,910 11,760
4,455 8,865 17,640
5,940 11,820 23,520
7,425 14,775 29,400
8,910 17,730 35,280

Total
Estimated
Accidental
Installment Realisable Value Risk Cover
( )
18,000
19,665
18,000
36,000
39,330
36,000
54,000
58,995
54,000
72,000
78,660
72,000
90,000
98,325
90,000
1,08,000
1,17,990
1,00,000

1 unit = 100 sq. ft.

b. Having considered the above, I proceed further and note that for subscribing to the plans
of the Company, a customer/ investor was required to submit an Agreement (the same

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is also in the nature of application form). The relevant terms and conditions as noted on
the agreement are as under:
Under the schemes, the value of the plot will be 100 per sq.ft. Further, one unit has
been said to be equal to 100 sq.ft.
The Company provides the loan facility and accident benefit to its customers/
investors.
The plot is promised to be allotted to the customers, in case of installment payment
plan, within 120 days on receipt of 50% of the total payment. In installment payment
plan, the allotment happens after atleast 24 months. In single installment plan, the plot
was promised to be allotted after 365 days.
The Company can allot the plot/ land as per its own discretion.
The customer will have the ownership of the plot; however during the tenure of the
agreement, the Company reserves the right over development and maintenance of the
land, plantation and sale proceeds of the crops.
The cost of the plot/ land includes the cost of the land and development expenses
(including cost of irrigation, fertilizers, pesticides and other maintenance expenses).
The customer will get the payment only after completing the tenure of the plan.
c. The other documents are the Registration Certificate and receipt. These documents are
issued by the Company to its customers. I have perused the copy of the registration
certificate, the same reads as In response to your application, we are pleased to inform you that
you have been registered for the Plot(s) booked you as per details are hereunder. The terms of booking and
allotment shall be governed by the terms of Application, Agreement and also General Terms and
Conditions printed overleaf. The registration certificate contains the space for registration
number, scheme code and term, plot unit and consideration, tenure of agreement, payment
mode, instalment amount, expiry date of agreement, estimated realisable value, the assured
realisable cost at the end of term, etc.
d. Another document is Latter of Land Unit Allotment. I have perused the sample Latter
of Land Unit Allotment issued to one Mr. Santosh Kumar and note that the same contains
the following details, i.e.
Number of land units Area (Sq.ft.)
Land unit(s) number -

1
125
1.00/ Hectares
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Khasra Gate No.

753
Village
Sabdalpur-c
Tehsil
Bharthna
District
Etawah
State
U.P.
The relevant clauses of the Letter of Land Unit Allotment is as under:
SAIL reserves the right to change the location of this allotment, and allot you an alternate
site at any other place. You are required to immediately get in touch with the concerned Brach
Manager/ Branch In-Charge to find out what these defect are, and remove them. In case of your
failure to remove these defects, within 45 days of receipt of this Allotment Letter this allotment
would stand cancelled, and it would not be possible for us to execute/ procure execution of sale
deed for conveying the said Land Units(s) to you, and you alone shall be responsible for the
consequential breach of the Agreement between us in that regard.
The sale deed in respect of the Land Unit (s) allotted to you shall be executed and registered
subject to condition mentioned in your letter for Land Registration.
This allotment and the subsequent conveyance of the aforesaid land to you shall remain subject to
the Rules, contained in the Rule Book supplied to you, the Terms and Conditions, contained
in the Agreement form signed by you
A sum of Rs. paid by you to SAIL under Single Installment Scheme Has now been
appropriated by SAIL towards the cost which are to be met in procuring the said property and
conveying it to you, developing the same, planting the required saplings, plants, trees, crops, etc.
management fee and other ancillary and incidental expenses thereto.
e. The next document is a brochure for agent, wherein the Company has represented that
as it works under the Department of Company Affairs, it is not registered with SEBI.
Following important clauses are noted therefrom:
The investor/ customer has the option to surrender the agreement.
On completion of the agreement, the investor/ customer has the option of either
retaining or selling the plot/ land. The Company provides for marketing services for
sale of the plot.
The Company retains the right to enter the plot/ land.
The Company had provision for joint sale deed. Customer does not get any claim over
the common facilities provided by the Company
8.

My findings on the discussion of the documents of the Company are as under:

a. The allotment of the plot is solely at the discretion of the Company. No option was given
to the customer to specify the location/ details of the land in the agreement.
b. As per the agreement, the customer/ investor gets the payment after completion of the
tenure of the plan. The same suggest that the plan of the Company is a mere investment
scheme.

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c. The registration letter/ latter of land unit allotment does not provide the exact location
of the land. The latter of land unit allotment only provides the Land Unit No., however,
no supporting map/ layout plan is attached to identify the land/ plot.
d. Development of plot was an integral part of the plan of the Company.
e. The value of the plots offered by the Company are same i.e. 100 per sq.ft. I note that
the value of each piece of land usually varies according to location, however, the schemes
operated by the Company suggests that the land was being sold as a homogeneous
commodity, at a fixed price.
f. Further, the cost of the plot had included the cost of land, development charges, other
inputs, saplings, plants, trees, etc.
g. The customer though stated to be an absolute owner of the land, the right of development
and maintenance is exclusively retained by the Company.
h. As per the details submitted by the Company, it had mobilised 94,79,362.
9.

Now I proceed to deal with the characteristics of the impugned plans/ schemes floated
and carried on by the Company against the four conditions under Section 11AA(2) of the
SEBI Act as alleged in the interim order. For concluding whether a scheme is a CIS or not,
all the four conditions under Section 11AA(2) of the SEBI Act should be satisfied.
i.

The first condition is that the contributions, or payments made by the investors, by whatever name
called, are pooled and utilized for the purposes of the scheme or arrangement. In this regard, I note
that:
-

The Company accepts the contribution/ investments from the investors/ customers
for subscribing to one of its plans for the purchase of plot.

Till the stage of agreement and registration certificate, the Company does not
identify the land to be sold to the customers.

The Company promises to allot the plot under the one time payment plan after the
completion of 365 days from the date of making application. Under installment
payment plan, the plot is promised to be allotted within 120 days on receipt of the
50% of the total payment.

The Company does not identify the plot in the registration certificate. Though the
same provided for the estimated realisable value at the end of term, which was not
allotted till that time.

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Further, the Latter of Land Unit Allotment states that on allotment of land, the
payment made has been appropriated towards the cost which are to be met in procuring the
said property. The same suggests that even after issuing the Latter of Land Unit
Allotment, the Company is yet to purchase the land.

Even if, it is assumed that the Latter of Land Unit Allotment specified the details of
the land, then also in the absence of any layout plan/ map, it is difficult to identify the
exact location of the plot with the available details. Further, the Company reserves the
right to change the location of the plot allotted and to provide an alternate plot.

These facts show that the Company pools the investment made by the customers, with an
aim/ object of carrying out the overall plan/ scheme. From the same, it can be concluded
that the contributions, or payments made by the investors, are pooled and utilised by the
Company for the purposes of the scheme or arrangement, the scheme being to accept
contributions/ payments in the name of sale of plot/ land. Thus, satisfying the first
condition as stipulated in Section 11AA(2)(i) of the SEBI Act.
ii.

The second condition is that the contributions or payments are made to such scheme or arrangement
by the investors with a view to receive profits, income, produce or property, whether movable or immovable
from such scheme or arrangement. The plans of the Company and registration certificate
provides for the estimated realizable value, which is higher than the invested amount.
The registration certificate also has space for assured realisable cost at the end of term.
The plans of the Company also provided for loan facility and the accident benefit to its
customers/ investors. From the same, it can be concluded that the investment/
contributions were made by the customers/ investors were with a view to earn profits.
Considering the same, it is concluded that the customers/ investors had made the
contribution/ payment to the Company with a view to earn profits/ income/ property/
return on the initial investments that may accrue to them as applicable, thus attracting the
second condition as stipulated in Section 11AA(2)(ii) of the SEBI Act.

iii.

The third and fourth conditions under Section 11AA(2) of the SEBI Act are being
discussed together. The said conditions are that the property, contribution or investment forming
part of scheme or arrangement, whether identifiable or not, is managed on behalf of the investors and the
investors do not have day to day control over the management and operation of the scheme or arrangement.
In this regard, I note that the payments/ investments made by the customers/ investors
Page 8 of 13

is retained by the Company, who in turn manages these on behalf of the customers/
investors during the term of plans. Further, the customer investing with the Company is
required to give authority for the development of the plot in favour of the Company. The
clause that during the tenure of the agreement, the Company reserves the right over the
development and maintenance of the land, plantation and the sale proceeds of the crop,
hints that the plot was not managed by the customers, at any stage of the scheme. The
investor/ customer was given the right to inspect the plot and tender suggestions,
however, the Company has not produced anything to show as to how the investor/
customer will identify the plot. In view of the same, it can be concluded that the
investments of the customers/ investors were managed and utilized by the Company at its
discretion.
In view of the above, it can be concluded that the plans/ schemes of the Company satisfies
the third and fourth conditions under Section 11AA (2) of the SEBI Act also.
10.

From the discussion above, it is evident that the Company solicits investments from its
customers in its scheme of purchase of plot. The scheme of the Company in taking monies
from its customers/ investors and promising them estimated value at the end of the
contract definitely fall within the ambit of Section 11AA of the SEBI Act. As all the four
conditions specified under Section 11AA(2) of the SEBI Act are satisfied in the present
facts of the case, the schemes/ plans promoted, launched, carried on and operated by the
Company are in the nature of CIS in terms of Section 11AA(1). While proceeding further,
I place my reliance on the observations of the Hon'ble Supreme Court, made in the matter
of PGF Limited & Ors. Vs. Union of India & Anrs. (Civil Appeal No. 6572 of 2004):
42.
... .. as per the agreement between the customer and the PGF Limited, it is the responsibility of
the PGF Limited to carry out the developmental activity in the land and thereby the PGF
Limited undertook to manage the scheme/arrangement on behalf of the customers. Having regard
to the location of the lands sold in units to the customers, which are located in different states while
the customers are stated to be from different parts of the country it is well-neigh possible for the
customers to have day to day control over the management and operation of the
scheme/arrangement. In these circumstances, the conclusion of the Division Bench in holding that
the nature of activity of the PGF Limited under the guise of sale and development of agricultural
land did fall under the definition of collective investment scheme under Section 2(ba) read along
with Section 11AA of the SEBI Act was perfectly justified and hence, we do not find any flaw
in the said conclusion.
... ....

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53. therefore, hold that Section 11AA of the SEBI Act is constitutionally valid. We also
hold that the activity of the sale and development of agricultural land squarely falls within the
definition of collective investment scheme under Section 2(ba) read along with Section 11AA (ii)
of the SEBI Act ...
Therefore, having concluded that the activities of the Company are CIS, in terms of
Section 11AA of the SEBI Act, I proceed further with the matter.
11.

Section 12(1B) of the SEBI Act mandates that no person, shall sponsor or cause to be
sponsored or carry on or caused to be carried on any CIS unless it obtains a certificate of
registration from SEBI in accordance with the CIS Regulations. The Company has clearly
failed to do so. Regulation 3 of the CIS Regulations provides that no person other than a
Collective Investment Management Company which has obtained a certificate under the
said regulations shall carry on or sponsor or launch a 'CIS'. A person can launch or sponsor
or cause to sponsor a CIS only if it is registered with SEBI as a Collective Investment
Management Company. Therefore, the launching/ floating/ sponsoring/ causing to
sponsor any collective investment scheme by any person without obtaining the
certificate of registration in terms of the provisions of the CIS Regulations is in
contravention of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations.

12.

Further, in terms of Regulation 4(2)(t) of the SEBI (Prohibition of Fraudulent and Unfair
Trade Practices Relating to Securities Market) Regulations, 2003, dealing in securities shall
be deemed to be a fraudulent or an unfair trade practice if it involves fraud and includes
illegal mobilization of funds by sponsoring or causing to be sponsored or carrying on or
causing to be carried on any CIS by any person. This provision in the above Regulations
has been brought into effect from September 06, 2013. Accordingly, it could be held that
by mobilizing public funds through CIS without obtaining registration from SEBI as
required under Section 12(1B) of the SEBI Act read with Regulation 3 of the CIS
Regulations, the Company has contravened the above said provision.

13.

Liability of the Directors: I note that the interim order was issued against the Company
and its directors namely Mr. Rajesh Awasthi, Mr. Pravesh Kumar Karowliya, Mr. Rohit
Gupta and Mr. Shiv Kumar. The details of the appointment and resignations of the
directors of the Company are as under:
Name

Mr. Rajesh Awasthi

Date of Appointment
16/01/2012

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Date of Cessation
Continuing as director

Mr. Pravesh Kumar Karowliya

Mr. Rohit Gupta
Mr. Shiv Kumar

16/09/2013
16/01/2012
16/01/2012

Continuing as director
14/09/2013
Continuing as director

It is noted that Mr. Rajesh Awasthi, Mr. Pravesh Kumar Karowliya and Mr. Shiv Kumar
are the present director of the Company.
It is noted that the noticees namely Mr. Rohit Gupta had resigned from the Company on
September 14, 2013. I note that such resignation does not absolve him from the charges
levelled in the interim order, in the light of the incorporation of the Company on January
16, 2012 and commencement of the schemes in the period during which he was the
director of the Company. Therefore, I have no hesitation in holding that the Company
and its directors namely Mr. Rajesh Awasthi, Mr. Pravesh Kumar Karowliya, Mr. Rohit
Gupta and Mr. Shiv Kumar were engaged in the illegal fund mobilising activity by floating/
sponsoring/ launching, unregistered/ unauthorised CIS, as defined in the Section 11AA
of the SEBI Act. In view of the above findings and observations made in this Order and
the violations committed by the Company, it becomes necessary for SEBI to issue
appropriate directions in order to protect the interest of investors and also to secure the
interest of the securities market.
14.

In view of the observations made in this Order, I, in exercise of the powers conferred
upon me under Section 19 of the Securities and Exchange Board of India Act, 1992 and
Sections 11(1), 11B and 11(4) thereof and Regulation 65 of the SEBI (Collective
Investment Schemes) Regulations, 1999, hereby issue the following directions:
a. Swar Agrotech India Limited [CIN: U01403UP2012PLC048364], Mr. Rajesh
Awasthi [PAN: AGMPA1004E], Mr. Pravesh Kumar Karowliya [DIN: 02104180],
Mr. Rohit Gupta [PAN: APBPG3984P] and Mr. Shiv Kumar [PAN: BLGPK9508K]
shall abstain from collecting any money from the investors or launch or carry out any
Collective Investment Schemes including the scheme which have been identified as a
Collective Investment Scheme in this Order.
b. Swar Agrotech India Limited and its directors namley Mr. Rajesh Awasthi, Mr.
Pravesh Kumar Karowliya and Mr. Shiv Kumar shall wind up the existing Collective
Investment Schemes and refund through Bank Demand Draft or Pay Order, the money

Page 11 of 13

collected by the said company under the schemes with returns which are due to its
investors as per the terms of offer within a period of three months from the date of this
Order and thereafter within a period of fifteen days, submit a winding up and repayment
report to SEBI in accordance with the SEBI (Collective Investment Schemes) Regulations,
1999, including the trail of funds claimed to be refunded, bank account statements
indicating refund to the investors and receipt from the investors acknowledging such
refunds.
c. Swar Agrotech India Limited and its directors namley Mr. Rajesh Awasthi, Mr.
Pravesh Kumar Karowliya and Mr. Shiv Kumar are permitted to sell the assets of the
Company only for the sole purpose of making refunds as directed above and deposit the
proceeds in an Escrow Account opened with a nationalised Bank.
d. After completing the aforesaid repayments in terms of sub-paragraph (b) above, the
Company shall file a certificate of such completion with SEBI, within a period of 15 days,
from two independent peer reviewed Chartered Accountants who are in the panel of any
public authority or public institution. For the purpose of this Order, a peer reviewed
Chartered Accountant shall mean a Chartered Accountant, who has been categorized so
by the Institute of Chartered Accountants of India (ICAI).
e. Swar Agrotech India Limited and its directors namley Mr. Rajesh Awasthi, Mr.
Pravesh Kumar Karowliya, Mr. Rohit Gupta and Mr. Shiv Kumar are also directed to
immediately provide a complete and detailed inventory of all their assets and properties
and details of all their bank accounts, demat accounts and holdings of shares/ securities,
if held in physical form.
f. Swar Agrotech India Limited and its directors namley Mr. Rajesh Awasthi, Mr.
Pravesh Kumar Karowliya, Mr. Rohit Gupta and Mr. Shiv Kumar are restrained from
accessing the securities market and are prohibited from buying, selling or otherwise dealing
in securities market for a period of four (4) years.
g. In the event of failure by Swar Agrotech India Limited and its directors namley Mr.
Rajesh Awasthi, Mr. Pravesh Kumar Karowliya, Mr. Rohit Gupta and Mr. Shiv
Kumar to comply with the above directions, the following actions shall follow:

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- Swar Agrotech India Limited and its directors (past and present) namley Mr.
Rajesh Awasthi, Mr. Pravesh Kumar Karowliya, Mr. Rohit Gupta and Mr. Shiv
Kumar shall remain restrained from accessing the securities market and would further
be prohibited from buying, selling or otherwise dealing in securities, even after the period
of four (4) years of restraint imposed in sub-paragraph (f) above, till all the Collective
Investment Schemes of Swar Agrotech India Limited are wound up and all the monies
mobilized through such schemes are refunded to its investors with returns which are due
to them.
- SEBI would make a reference to the State Government/ Local Police to register a civil/
criminal case against Swar Agrotech India Limited, its promoters, directors and its
managers/ persons in-charge of the business and its schemes, for offences of fraud,
cheating, criminal breach of trust and misappropriation of public funds; and
- SEBI would make a reference to the Ministry of Corporate Affairs, to initiate appropriate
action as deemed fit against the Company, Swar Agrotech India Limited.
- SEBI would also make a reference to the Ministry of Corporate Affairs to restrain the
abovementioned noticee directors from being directors in other companies.
- SEBI shall initiate attachment and recovery proceedings under the SEBI Act and rules
and regulations framed thereunder.
15.

This order shall come into force with immediate effect.

16.

This Order shall be without prejudice to the right of SEBI to initiate prosecution
proceedings under Section 24 and adjudication proceedings under Chapter VIA of the
Securities and Exchange Board of India Act, 1992 against Swar Agrotech India Limited,
including other persons who are in default, for the violations as found in this Order.

17.

Copy of this Order shall be forwarded to the stock exchanges and depositories for
necessary action.

DATE : May 06, 2016

PLACE : Mumbai

PRASHANT SARAN
WHOLE TIME MEMBER
SECURITIES AND EXCHANGE BOARD OF INDIA

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