order in the matter of pyramid saimira theatre ltd

8/9/2019 Order in the matter of Pyramid Saimira Theatre Ltd

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WTM/SR/ EFD-DRA 2/ 72/03 / 2015

BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIACORAM: S. RAMAN, WHOLE TIME MEMBER

ORDERU !"# S"$%&' ( 11, 11B, ) ! 11*+ ' % " S"$ #&%&"( ) ! E $ ) " B')#! ' I !&) A$%, 1 2

IN THE MATTER OF 4RAMID SAIMIRA THEATRE LIMITED 1. On December 21, 2008 and December 22, 2008 there were several media reports that

Securities and Exchange oard o! "ndia #hereina!ter re!erred to as $SE "$% had directed Shri

&. S. Saminathan, one o! the promoters o! &'ramid Saimira (heatres )imited #hereina!ter

re!erred to as $&S()$%, to ma*e an open o!!er within 1+ da's, !or allegedl' violating

creeping ac uisition norms under the SE " #Substantial -c uisition o! Shares and

(a*eovers% egulations, 1// #hereina!ter re!erred to as $S-S( egulations$% at a price notless than s. 2 0.

2. &reliminar' in uiries revealed that SE " had not issued an' such direction and that the

purported SE " letter was !orged. -n investigation was ordered !or the purpose o!

examination o! trading in the scrip o! &S(). "nvestigation b' SE " inter aliarevealed the

!ollowing (he closing share price o! &S() on December 1/, 2008 was s. .+0 at the

omba' Stoc* Exchange #hereina!ter re!erred to as $ SE$% and when the mar*ets

opened on December 22, 2008, share price o! &S() increased to s. 83 at 4ationalStoc* exchange #hereina!ter re!erred to as $4SE$% and s. 82./0 at the SE.

Some purchases were made 5ust be!ore the 6issue6 o! the !orged SE " letter and

there was sale o! substantial number o! shares o! &S() when the mar*ets opened

on December 22, 2008, pursuant to reports o! the impending o!!er to be made b'

&.S. Saminathan. One trading client namel' Shri 4irmal 7otecha was the largest selling client on

both SE and 4SE on December 22, 2008. e was a ma5or shareholder o! &S()

and also the largest bene!iciar' o! the price rise which occurred due to thepublication o! the !orged SE " letter.

4irmal 7otecha had o!!loaded almost his entire sta*e in &S() at arti!iciall' in!lated

price levels on December 22, 2008 and bene!ited !rom the price increase in the

shares o! the compan'.

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9und trans!ers !rom and between 4irmal 7otecha and his close relatives #his

mother, wi!e% and related: associated entities: persons etc. too* place, on

December 22, 2008.

3. &ursuant to the preliminar' !indings o! the investigation, SE " vide an Order dated -pril

23, 200/ #hereina!ter re!erred to as $interim order$% issued under Sections 11, 11 and 11#+%

o! the Securities and Exchange oard o! "ndia -ct, 1//2 #hereina!ter re!erred to as $SE "

-ct$%,inter alia directed ;r. 4irmal 4arendra 7otecha, ;r. a*esh Sharma, ;r. a5esh ertain persons: entities alleged to be related: associated with 4irmal 7otecha

#who prima faciepla'ed a *e' role in !acilitating him, in carr'ing out suspicious

ban*ing transactions% not to bu', sell or deal in the securities mar*et including in

"&Os, directl' or indirectl', till !urther directions. &rohibiting two bro*ers !rom entering into an' !resh agreements with new clients

in their operations as stoc* bro*ers till !urther directions. >ertain entities: persons and their proprietors: partners: directors who were !ound

to have carried out suspicious ban*ing transactions and channelled !unds either

directl' or indirectl' in the stoc* mar*ets, not to bu', sell or deal in the securities

mar*et including in the "&Os, in an' manner, either directl' or indirectl', till !urther

directions.

+. -part !rom these entities: persons mentioned above, SE " initiated several other

proceedings against several other entities, !or their role in mar*et manipulation related to

the trading in the scrip o! &S() through orders issued !rom time to time.

. (his order pertains to the !ollowing entities and their proprietors : partners: directors who

!orm part o! the list o! entities mentioned in the interim order !or the reasons detailed

hereina!ter.

(able -

N)6" ' % " " %&% N)6" ' % " #'8#&"%'#/D"$%'# D"%)&9( ' AN

1. -dino (rading >ompan' &vt.)td.

Dinesh a!na: =inod a!na --9>- 038?

2. -dvance 9instoc* &vt. )td. -nand unia: &opatlal Shah:San5a' undia: a5esh udia,7arul Shah

-- >-// >



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3. -l!a >eramic (rading -gencies&vt. )td.

;u*esh >ho*si: ?a'esh Sampat --@9-0A0/&

+. -l*a Diamond @opal =erma --->- 23AD

. -lliance "ntermediaries B "4etwor*

;u*esh >ho*si: ?a'esh Sampat 4ot available

A. -man Enterprises @anesh ?ain ->=&? /8+

. -mar Enterprises &atel a*esh ohitbhai -& &&10 4

8. -mar (rading >o. havi* . Shah -C &S 222;

/. -mbe Sales >orp. Ompra*ah Sagarmal ?ain -@ &?8 A2>

10. -mrut (rading >o. havi* asmu*h Shah -C &S 222;

11. -nand ;arathe -nand ;arathe -7F&;0A//;

12. -nchal &roperties &vt. )td. &raveen 7umar ?ain: Dattaram)ade

--@>-0A81-

13. -n5ali -*hade -n5ali -*hade - 7&-++ 0D

1+. -n*it Enterprises &arvin Shah -)=&S 2A8 ;

1 . -n*it 7umar &agari'a G -S)&&802A-

1A. -ravind 7umar Soni -rvind 7umar Soni 9;&S0 /A9

1 . -rihant @ems -n*it 7umar &agari'a -S)&&802A-

18. -sho* ;etal B (ubes ?oshi (arachand huraram -9 &?/3039

1/. -sho* ;etal >orp 7ishormal ?ain, 7iran 7. ?ain --D&?2/+2

20. a!na Exim &. )td. ;u*esh ?ain : &raveen 7umar ?ain

--D> 2+/ E

21. agoria Enterprise -mit 7umar agoria - ;& 2 3

22. ala5ee Diamond -rvind 7umar Soni 4ot available

23. ala5i >orporation Shah ant' Dinesh O;&SA+2 C

2+. hairav Diamonds a5endra*umar ; ?ain -94&? 10E

2 . hairav (rading >o. hivra5 @u5ar -;D&@8/+0)

2A. ha*ti (rading a!na =inod 7umar -"9& 13129

2 . havani (rading >o. >hirag &atel - S&&22/

28. inal Shah inal Shah 4ot available

2/. oston -genc' ;angalram Shah -;9&S2/AA4



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30. >apetown ;ercantile >o. &vt. &an*a5 ?ain -->>> +00;

31. >handan @ems handu 7himavat >handu 7himavat 4ot available

33. >ho*ni Dani esort u*umchand ?ain -- >> 0A

3+. >lassic Enterprises ?ignesh -mrutbhai &atel 4ot available

3 . >rown ;etal "ndia Shah Suresh &. 4ot available

3A. D. -mit 7umar -mit 7umar S. Sonetha O&S 32 -

3 . Dada (rading >o. San5a' ai: ambharos adav -->>D/+11

38. Darshan (rading >o. Sourabh a5endra ?ain -7D&?+ 09

3/. Darshana >orporation Shah ;anglaram . -;9&S2/AA4

+0. Deep Enterprise Deepa* hatevara 4ot available

+1.

Deepa* Steel >entre anmal ?. hansali ->orporation >hauhan astimal &. 4ot available

+3. Devam "mpex &vt. )td. &i'ush Dand -->>D3// C

++. Dhanlaxmi (ubes -nd ;etal a5u*umar -marchand . hansali -- & 3080@

+ . Diamond Export u*michand ?ain -D>&?/311C

+A. Dinesh 7umar ;. @upta Dinesh 7umar ;. @upta -- &@ 1+/9

+ . Doshi (rading >o. ?agdish . Doshi -)O& // 87

+8. Edex &roduction -ndroadcasting &vt.

&rithi &aul Sethi 4ot available

+/. E*ta Shares and Securities &ramod @adia -Do &vt. )td. &an*a5 ?ain 4ot available

1. 9erro 4. -llo's Sohanlal S. ishnoi 4ot available

2. 9oremost ;erchandise Dinesh 7umar ?ain -- >91/21D

3. 9un*e eat Exchanger "ndia &eter 9un*e 4ot available

+. @anesh (rading >o. Deepa* D. Faghe --=&F1+01E

. @autam 7umar hansali G -??& 30 4

A. @a'atri @ems atan 7umar -grawal -@9&-08/+

. @enus >ommu (rade )td. =irag &atel: itesh &anchal 4ot available



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8. are 7rishna Export Sonu a!na 4ot available

/. ari Om (rading >o. -pnesh angnath Sangle ES&SA+ /-

A0. arish ;etal B (ubes arish S. ?ain - &?8223D

A1. ema (rading >o. &vt. )td. =asudeo Soliwal 4ot available

A2.

etal a5esh &atel G -Class Diamond Exports &.

)td.&raveen 7umar )odha, San5a'7umar )odha

-- > /3A0@

A+. one' "nternational Ompra*ash Shrishrimal -S &?2 0 ?

A . "mpex Sales >orpn. ;anglaram Shah -;9&S2/AA4

AA. "ndian >orpn. ?a!arbhai Danavala -?@&D/220)

A . ?.&. Enterprises &an*a5 7umar ?ain -D"&?+2/A?

A8.

?agat Enterprise ?ignesh -.&atel -@-&& 32/07A/. ?ana* ;etal "ndia =ishnoi ;angilal -E &=3/+ >

0. ?avda "ndia "mpex )td. amesh ?avda --->- 0A )

1. ?a' -mbe ;arbles Suresh ?ain -99&?8/++?

2. ?odharam ishnoi ?odharam ishnoi -?"& 82 &

3. ?&7 (rading ". &vt. )td. ;anish ?ain -- >?A2+ 4

+. ?'oti Enterprises a*esh 7umar Sen -(&S1A0A)

. 7alash Diam &awan*umar S. (iwari -9F&( 1A2

A. 7alash Diamonds &awan 7umar (iwari -9F&( 1A2

. 7alpana >orporation 7alpana -. Shah &S 8A1S

8. 7al'an 7irti "nternational ;anglaram Shah -;9&S2/AA4

/. 7amal Diamonds Sonu a!na, 7amlesh Dhammani --D>7220 ;

80. 7amlesh Dhamman 7amlesh Dhamman 4ot available

81. 7ana* "mpex ;ahendra ?ain -""&?8+A3>

82. 7anchan "mpex Sushil ;ehta - &&;/ +7

83. 7astbhan5andev Developers -shwinbhai &atel: ipinchandrahatt

- E9S20/ C

8+. 7eshari'a Diam &vt. )td. =i5a' 4arendra 7othari,&awan*umar (iwari

--D>7221 ;



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8 . 7eshav "mpex -nil >ho*hara -@ &> 831)

8A. 7hushi >orporation &rem &ra*ash (ailor - S&(/280@

8 . 7irti Enterprises &rem &ra*ash (ailor - S&(/280@

88. 7otsons "mpex &vt. )td. Dharmendra 7othari,>handramohan =erma

-->>7/10+>

8/. 7rina @ems 7amlesh Shah 4ot available

/0. 7unal @ems -sho* atan Soni --O&=A3217

/1. 7ush industan Entertainment)td.

-5a' Dixit -->>73 / ;

/2. 7ush "nternational amesh ?avda - >&= 13/@

/3. )an*a Diam @anpat & hadir*e 4ot available

/+. )arsen Exports )axmanchand ?ain ->H&?+33 C

/ . )eena @ems a5esh averi 4ot available

/A. )exus "n!otech )td. ose &adbidri --->)+A+A@

/ . )ove 7hush ?odharam ishnoi -??& 82 &

/8. )uxur' (rading >o. San5a' ai: am haros adav -- >)+/A/;

//. ;.@. >orporation 4andalal @ 4agpal -D9&4 A8+b

100. ;.;. Diamond &. )td. ;ahesh &'arelal ;ehta --9>;2 A -

101. ;aha* "mpex ;ohanlal ?ain # u!% --E ; AA

102. ;ahalaxmi >orp. -shwin &atel -49&& 2 0

103. ;ahavir >orporation a!na =inod 7umar -"9& 13129

10+. ;ahendra ?ain -""&?8+A3>

10 . ;anish Enterprises amu &ema @u55ar 4ot available

10A. ;ann "mpex hagwan Singh SF&S8 01D

10 . ;ano5 7umar G -77&;38 9

108. ;aster Surve'ors B >ontractors Suresh (hanage 4ot available10/. ;atrix Exports =asant 7umar & -;H&;/3 2)

110. ;auli* Diamonds Dil*ush abel -;)& 2+ 0C

111. ;a'a ?ewels &vt. )td. ;ahendra -mritlal ?ain, =i*ram -mritlal ?ain, @irish -mritlal ?ain

--9>; 33 @



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112. ;eet >orporation -ashish ;ahawar -&;&;2/3

113. ;egha (raders Deshra5 ?at -9 &?A0 1?

11+. ;ihir -gencies &. )td. ;u*esh >ho*shi : ?a'esh Sampat --@9;080/D

11 . ;ilan @ems ;ano5 7umar ;ehta -77&;38 9

11A. ;ohanlal . ?ain G -- &?10/2C

11 . ;ohit "nternational 4ilesh &armar -"H&&8A80C

118. ;u*ta "nternational a*esh ?ain 4ot available

11/. 4atasha Enterprise ose &adbidri -"&&&A3 2

120. 4av*ar (rading >o. -shish ?ain 4ot available

121. 4av*ar (rading >o. G -O &@2A00

122. 4eer (raders @eeta ?adhav: u*michand ?ain -->&?/A A&

123.

4ew &lanet (rading >o )td. =irendra -bhani B ose&addibiri -- >481 AE

12+. 4ew Fave ;ercantile >ompan' -vinash (rima*e 4ot available

12 . 4irmal Enterprises Sharma San5a' ;anilal -CC&S122 &

12A. Om >orporation >hirag &atel - S&&22/

12 . Om >orporation Shantilal &ra5apat 4ot available

128. Omega &etro &last Sur'a5i 7 honde -;?& S +A12?

12/. Orbit @ems =init ?ain - ;&?03327130. Ostwal (rading ". &. )td. ;anish ?ain --->O / ;

131. &. . Diamonds 4ara'an )al Sharma -Ehandulal -- >& AA+D

13 . &attani ogesh . G 4ot available

13A. &ritesh -. &atel G 4ot available

13 . &ri'ansh Exports ?itendra 7umar ?ain - 4&? 21D

138. &ro!icient "n!ra &. )td -sho* ?ain --E>& /1C

13/. &ushpa Diam &vt. )td. Dulra5 ?ain B -sho* ?ain 4ot available



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1+0. . . (raders avi 7umar ?ain -7=&? 83+C

1+1. .7. (ravels G -?@&D/220)

1+2. .S. Enterprise atan*umar -garwal B

Sunil 7umar -garwal

-9S&- 223?

1+3. aghu*ul Diam &vt. )td. 4irmal ?ain B San5a' (iwari --D> AA08&

1++. aghunandan a'ons )td. 11

1+ . a5 -llo's -nd Steel &vt. )td. a5*umar ?ain: 4itin Shah --D> +8+/)

1+A. a5 Diamonds &an*a5 Singhi )9&S2A1A

1+ . a5 atna ?ewellers 4irmal 7. havsar -9 & 3AA87

1+8. a5 (raders -vichal Soni (&S1033E

1+/. a5esh ?ain G -"?&S38+/

1 0.

a5esh &amecha G -E &&A 3)

1 1. a5*amal Steel a!na =inod 7umar -"9& 13129

1 2. a*hi @ems =ipul Sharma -S&S 23 E

1 3. atan Enterprises Oatmal &urohit -CE&&0/0/

1 +. atan Exports ogesh 7umar Sancheti - E&SA AA)

1 . avi Enterprises abulal ?ain -- &?+ 10

1 A. avi Exports avi &ra*ash ?ain -7?&?A022E

1 . ealgold (rading >o. &vt )td 4ilesh &armar 4ot available

1 8. eliant ;etal >orporation a5purohit -r5un &. -)-& A303-

1 /. enisha "mpex &vt )td Dinesh ?ain : Dulra5 ?ain --D> 1/80@

1A0. iddhi Siddhi ;ultitrade )td &an*a5 ?ain --D> 831)

1A1. idham Enterprises a5*umar -grawal -9S&- 2227

1A2. ohit (rading >o. 7amal (ha*ur -DH&(22+/C

1A3. oop "mpex Dulra5 & / +AE

1AA. Sagar (rading >o. Shah Suresh &. 4o available



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1A . Sahara "mpex #"ndia% =astupal ;. ?ain -DO&?2 32&

1A8. Sahil ?ewel &oonam ?ain -" &?A83 D

1A/. Sai 7rupa (rading 4avratan S ?ain - &?+038?

1 0. Sai )eela (rading &vt. )td. =i5a' Suresh (aware, 4itin -r5un@harat

--7>S+ 8>

1 1. Sandeep Steel "ndustries abulal 7. ishnoi -E & 12+2>

1 2. San5ivani Enviro &rotection )td. =irendra -bhani: ?itendra (ater: =asudev Soliwal

--D>S3+33&

1 3. Sans*ar (rading >o. @anapat )al -D@&)2 13-

1 +. Sapna Diamond Sushil ;ehta - &&;/ +7

1 . Sarita Diamonds ?itender ?ain -9O&?3 +3>

1 A. S ? (rading &vt. )td. ;anish ?ain: &raveen ?ain --7>S/022&

1 . Shah (rading >o. 4aresh 7. Shah

#(he name o! 4aresh 7. Shah was substituted !or the name ;s.

etal . Shah vide order dated9ebruar' 03, 2010%

-C&S/0/AD

1 8. Sha*ti (rading >o. a!na =inod 7umar -"9& 13129

1 /. Shan*eshwar (raders &vt. )td. ?avarilal @autamchahd ?ain --)>S/0124

180. Shi'on Enterprise >handra*ant &atel -O &&+2+A>

181. Shree Earth ;overs B )andDevelopers

a5emdra ?anardan Surve 4ot available

182. Shree Export -sho* Shrishrimal -- -/2 8

183. Shree 9orge "ndustries abulal 7. ishnoi -E & 12+2>

18+. Shree amdev ;etal O*haram amshi5i >houdhar' -@9&>/22 )

18 . Shri @anesh @ems Su*hpal &ra5apat -O &&+ 0A

18A. Shubh (rading >o. )alaram @u5ar -& &@33A/C

18 . Shubham Exports @autam 7umar hansali -?S& 30 4

188. Siddham Exports ?a!arbhai Danaval -. -?@&D/220)

18/. Sigma (ours B (ravels 7amal . (ha*ur -DH&(22+/C

1/0. Simi "mpex Sandeep S. athore -)


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1/1. Sonal @ems (rading &. )td. u*michand ?ain : @eeta ?adhav --)>S/ 14

1/2. Soundar'a @ranite B ;arble Suresh ?ain -99&?8/++?

1/3. Star Enterprises &awan (arachand ?ain -"-&?2 3/D

1/+. Star @ems hagirathi &uhan - (&& 10A?

1/ .

Su ?ewels Exim &rivate )td.#erstwhile >ho*hi Dhani esorts&. )td.%

u*michand ?ain, @ulab ?ain --;>S2/88)

1/A. Sunblin* (rading -nd "nvt. )td. Sandeep Dalal: a5endra*umarhimra5*a

-->>S0A309

1/ . Sunchan Securities )td. Sunil ;ansinghani:7anchan;ansinghani

--9>S8/ 3-

1/8. Super @old (radin >o &vt )td. @eeta ?adhav B u*umchand ?ain

-- >S 2 +E

1//. Supre @old (raders @eeta ?adhav 4ot available

200. Swasti* Diam &vt. )td. Dulra5 ?ain B Dinesh ?ain - O&?21 A;

201. (amanna @em @hevarchand . &amecha -9F&&A3+1C

202. (arachand hoorchand ?ain G 4ot -vailable

203. (ritop (rading &vt. )td. has*ar >(8AA2?

20+. orpn. ;u*esh >ho*si ---&> A ?

212. =imal Diamond =imal ?ain -E


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21A. ash =. ?ewels )td. ?a'ant 7ansara ---> 111/&

21 . ashra5 Enterprise Su*hra5 (arachand ?ain ->C&? 210D

A. &ursuant to the issuance o! the interimorder, one o! the above named entities, viJ. Shah

(rading >ompan' #listed at no. 1 in (able -% appeared !or the personal hearing through

its proprietor, ;s. etal . Shah. During the personal hearing on December 01, 200/

be!ore the Fhole (ime ;ember, SE " it was observed that the name o! Shah (rading

>ompan' #&roprietor ;s. etal . Shah% was inadvertentl' included in the list. (herea!ter,

SE " sought clari!ication !rom the relevant ban* which vide letter dated -pril 23, 200/

stated that the credit o! Rs. 0,00,000 to >handan @ems #entit' no. 31 in (able -% on

-ugust 0A, 2008 was b' wa' o! trans!er !rom the account o! one Shah (rading >ompan'

whose proprietor was ;r. 4aresh 7. Shah and not !rom Shah (rading >ompan' whose

proprietor was ;s. etal . Shah. >onsidering the same, the directions issued against Shah

(rading >ompan' #&roprietor ;s. etal . Shah% were revo*ed while the entiti'K Shah

(rading >ompan' #&roprietor 4aresh 7. Shah% was included in the list o! persons:entities,

and was also directed not to bu' sell or deal in the securities mar*et including in the initial

public o!!erings, in an' manner, either directl' or indirectl', till !urther directions.

. Subse uentl', vide an order dated December 0/, 200/ issued against 20 entities, another

order dated ?anuar' 12, 2010 issued against entities and two separate orders both dated

?ul' 0 , 2010 issued against 2 more entities, the directions issued vide the interimorder were

con!irmed with respect to the / entities #also mentioned in the (able -%.

8. Fhile the interim directions were in !orce, 1/ entities: persons listed at (able -, !iled

appeals be!ore the on$ble Securities -ppellate (ribunal #hereina!ter re!erred to as

$(ribunal$% challenging the said interim directions. (he on$ble (ribunal disposed o!! the

appeals vide separate orders as mentioned in the table below, b' granting a sta' on the

operation o! the interim direction, ta*ing note o! the !act that these 1/ entities had

remained out o! the securities mar*et !or a considerable period o! time. (he (ribunal

!urther directed that the sta' is without pre5udice to the rights o! SE " to proceed !urther

in the matter and shall not be ta*en as an expression o! the (ribunal$s opinion on the

merits o! the case.

/. (he details o! the entities and dates o! the orders passed b' the on$ble (ribunal are as

!ollows



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N)6" 88")9N'(.

D)%" 'O#!"# '

SAT

S#. N'.&

T) 9" A

1. Edex &roduction androadcasting &vt. )imited

1 :2010 0 .10.2010 +8

2. -dvance 9instoc* &vt. )imited 38:2011 02.0 .2011 2

3. >apetown ;ercantile>ompan' &vt. )imited

10A:2011 21.0 .2011 30

+. -l*a Diamond "ndustries)imited

1A8:2011 1+.10.2011 +

. aghunandan a'ons )imited 21+:2011 23.01.2012 1++

A. -nchal &roperties #&% )imited 223:2011 30.01.2012 12

. 7ush industanEntertainment )imited

22+:2011 30.01.2012 /1

8. ?avda "ndia "mpex )imited 11:2012 03.02.2012 0

/. )exus "n!otech )imited / : 2012 03.02.2012 /A

10. San5ivani Enviro &rotection)imited

10:2012 03.02.2012 1 2

11. 9aststone (rading >ompan'&vt. )imited

+3:2012 2+.02.2012 0

12. iddhi Siddhi ;ultitrade&rivate )imited

3 :2012 2+.02.2012 1A0

13. S ? (rading #"ndia% &rivate)imited

38:2012 2+.02.2012 1 A

1+. =anguard ?ewels )imited +0:2012 2+.02.2012 210

1 . ash =. ?ewels )imited +2:2012 2+.02.2012 21A

1A. ?&7 (rading ". &vt. )imited 3A:2012 0+.0+.2012 3

1 . 4ew &lanet (rading >o.)imited

+1 : 2012 0+.0+.2012 123

18. Ostwal (rading ". &vt. )imited 3/:2012 0+.0+.2012 130

1/. ;ohit "nternational 1 0:2012 1/.0 .2012 11



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Page 13 of 16

10. " have considered the !acts and circumstances o! the case and the relevant documents on

record. "n particular, " have noted that the role o! these entities as revealed during the

investigation in the scrip o! &S() relates to large !und trans!ers between their accounts,

without an' explanation regarding their purpose. (he extent o! participation o! these

entities named in the (able - as revealed during investigation and subse uentl' is brie!l'

discussed below

). "nvestigation !indings indicated that 4irmal 7otecha, who had o!!loaded substantial

number o! shares o! &S() on December 22, 2008 at arti!iciall' in!lated prices, had

allegedl' used the ban* account o! one Om -ssociates !or carr'ing out ban*ing

transactions and those transactions were !ound to have been routed through this

account whose proprietor ;r. 7antilal &urohit was !ound to be a man o! limited

means and there!ore would not have been able to carr' out such ban*ing transactions

on his own income. (he investigation !urther revealed that 4irmal 7otecha had also

used the account o! one ;r. -mol 7o*ane as his !ront and 4irmal 7otecha was thebene!iciar' to the !unds trans!erred !rom Om -ssociates$ account, !rom where the

!unds were ultimatel' in!used into the stoc* mar*et through the bro*er, "ndia >apital

;ar*et &vt. )imited. (he !irst credit o! s.10 la*h to the ban* account o! -mol

7o*ane on September 10, 2008, was !ound to have been made !rom the account o!

Om -ssociates.

. "nvestigation !indings also revealed that prior to the trans!er o! Rs. 10 la*h to the

account o! -mol 7o*ane on September 10, 2008, Om -ssociates had received

credits !rom the !ollowing entities earlier mentioned in (able - #para , page 2%

Entit' 4o. in (able -

1. Shree Earthmovers and )andDevelopers

181

2. ala5i >orporation 23

3. hairav Diamond 2

+. >handan @ems 31

. 9erro 4 -llo's 1A. @a'atri @ems A

. arish ;etal and (ubes A0

8. 7anchan "mpex 82

/. Om >orporation 12



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10. &aras Steel "ndia 133

11. Shree 9orge "ndustries 1+2

12. a5 (raders 1+8

13. Sarita Diamond 1

1+. Sha*ti (rading >o. 1 8

1 . .S. Enterprise 183

1A. Shri &ravin abulal ?ain G

* Pravin Jain is/ was the director/ proprietor of certain entities named in Table A namely, JPK Trading I. Pvt.

imited, !stwal Trading I. Pvt. imited, "#J Trading Pvt. imited, $ew Planet Trading %o. imited, %apetown

&ercantile Pvt. imited, 'iddhi "iddhi &(ltitrade imited and Anchal Propreties Pvt. imited

$. (he investigation !indings reveal that a trail o! the accounts o! these entities had

prima !acie revealed that !unds were being rotated through all these accounts as well

as through a large networ* o! their connected accounts in a complex circuitousmanner and without an' explanation regarding their purpose and !urther that !unds

were allegedl' trans!erred to the account o! Shri -mol 7o*ane, !rom the accounts o!

various persons: entities mentioned in (able -, without an' bona!ide purpose. One

such che ue !or s. 18 lacs was issued b' one Shri ?ignesh -mrutbhai &atel o! >lassic

Enterprises to Shri -mol 7o*ane.

!. "t is also noted that !rom the account o! 1 persons: entities mentioned in (able -

#para , page 2%, an amount o! s.11,2A+,3+ ,/A/.2+ #One thousand one hundred and

twent' six crores !ort' three la*hs !ort' seven thousand nine hundred and sixt' nine

and twent' !our paisa% had been shown to have been sent out o! the countr' during

the !inancial 'ear 2008I0/.

". -part !rom the trans!er o! !unds to the account o! Om -ssociates on September 10,

2008, investigation !indings reveal several transactions to and !rom entities mentioned

in (able - and Om -ssociates. Some such transactions included trans!er b' ala5ee

Diamonds o! s. AA lacs to a5 (raders on October 11 and 13, 2008, who in turn

trans!erred s. A2 lacs to Om -ssociates on the same da'. Om -ssociates trans!erred

s. 0 lacs to Darshan (rading, who in turn, trans!erred s.1.18 crore to 4irman

;anagement Services &vt. )td., where Shri 4irmal 7otecha was one o! the directors .

. -part !rom these details, investigation !indings reveal that the entities mentioned in

(able - were interIconnected based on a statement given b' the proprietor o! Om



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-ssociates, ;r. 7antilal &urohit, that the ban* account o! Om -ssociates was

operated b' one ;r. &ravin ?ain who used to sign the che ues and that &ravin ?ain

was !ound to be lin*ed: connected to various entities named in the interimorder.

&ravin ?ain is: was the director: proprietor o! certain entities named in (able -

namel', ?&7 (rading ". &vt. )imited, Ostwal (rading ". &vt. )imited, S ? (rading

&vt. )imited, 4ew &lanet (rading >o. )imited, >apetown ;ercantile &vt. )imited,

iddhi Siddhi ;ultitrade )imited and -nchal &ropreties &vt. )imited and was

managing the a!!airs o! 4atasha Enterprise. (he address o! &ravin ?ain was shared b'

the directors: proprietors o! certain entities named in the (able - namel', San5ivani

Enviro &rotection )imited.

11. Since these suspicious ban*ing transactions relating to the entities as discussed earlier were

alleged to be lin*ed to potential mone' laundering activities that could be detrimental to

the genuine investors at large, a cop' o! the interim order was sent to the Director, 9inancial

"ntelligence


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proceedings against 3 entities stand concluded while proceedings against 10 other entities

are ongoing.

13. @iven that most o! the entities did not ma*e an' submissions with re!erence to the interim

order and that these entities: persons have been undergoing debarment since -pril 23,

200/ in terms o! the interimorder, i.e. !or a period o! !ive and a hal! 'ears #except the 1/

entities who !iled appeals be!ore the (ribunal% and who have undergone debarment ranging!rom two and a hal! to three 'ears, till the granting o! the sta' b' on$ble (ribunal, " see

no !urther purpose to issue a notice to show cause to these entities at this stage be!ore

concluding these proceedings.

1+. (he !indings o! the audit report o! " indicate the role o! the entities: persons mentioned

in the (able - is being restricted to suspicious ban*ing transactions. " also note that no

adverse comments have been received !rom 9"

order in the matter of pyramid saimira theatre ltd

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