Rose Valley Real Estate and Construction Limited has filed a writ petition in the Calcutta high court, challenging the order of Securities and Exchange Board of India (SEBI) for virtually stopping its business. The case will come up for hearing in the court of Justice Jayanta Biswas on Thursday.
In the petition, the company prayed for a stay on the operation of the order from SEBI, dated January 3, which directed the firm not to collect any money from investors, launch any scheme, dispose of property and assets or divert funds raised from the public to any bank account.
SEBI alleged that the company had been mobilising deposits from the public to launch a Collective Investment Scheme without obtaining a certificate of registration from SEBI.
The petition disputed the allegation, stating that the company did not fall within the jurisdiction of SEBI as it was not a listed company and did not operate in the securities market. The petition also claimed that the affairs of the company were regulated and administered by the ministry of corporate affairs, government of India, under provisions of the Companies Act, 1956.
The petition also said that the main business of the company was in real estate, its development and promotion. The method of receiving money for allotting land or property to prospective buyers cannot be equated to the collection of deposits from the public in the securities market, it stated.
As the company is not listed with any stock exchange in the country, SEBI does not have any jurisdiction to proceed in its affairs, the petition said.
