BEFORE THE ADJUDICATING OFFICER

SECURITIES AND EXCHANGE BOARD OF INDIA

[ADJUDICATION ORDER NO. AO/VKV/05/2015)
UNDER SECTION 15-I OF SECURITIES AND EXCHANGE BOARD OF INDIA
ACT, 1992 READ WITH RULE 5 OF SEBI (PROCEDURE FOR HOLDING
INQUIRY AND IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES,
1995
In respect of
M/s REGENT REALTECH LIMITED
(Earlier Known As 'MODI HOOVER INTERNATIONAL LIMITED')
(PAN: AAACM4171H)
Mezzanine Floor, Hemkunt Tower,
98 Nehru Place, New Delhi-110019
BACKGROUND IN BRIEF
1.

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

Circular No. CIR/OIAE/2/2011 dated June 3, 2011 and CIR/OIAE/1/2013 dated April
17, 2013, had directed all listed companies to the SEBI Complaints Redressal System
(SCORES) authentication and also redress the pending investor grievances within the
stipulated time period.

2.

SEBI observed that certain companies including M/s REGENT REALTECH

LIMITED (earlier known as 'MODI HOOVER INTERNATIONAL LIMITED' and
hereinafter referred to as "Noticee"), had neither obtained the SCORES
authentication nor redressed the grievance of investor(s) within the timeline stipulated

Adjudication order against M/s Regent Realtech Ltd.

Page 1 of 7

Brought to you by http://StockViz.biz

January 07, 2015

under the afore-mentioned Circular(s) and therefore, had failed to comply with the
aforesaid SEBI circulars.

3.

Based on the aforesaid observations, it was alleged that failure in obtaining SCORES
authentication i.e. User ID and password which was essential for accessing the
complaints and subsequent redressal within specified time, the Noticee has failed to
comply with SEBI circular No. CIR/OIAE/2/2011 dated June 3, 2011 read with
Circular no. CIR/OIAE/1/2013 dated April 17, 2013. The aforesaid alleged violation,
if established, makes the Noticee liable for monetary penalty under section 15C of
Securities and Exchange Board of India, 1992 (hereinafter referred to as SEBI Act).

APPOINTMENT OF ADJUDICATING OFFICER

4.

In view of the aforesaid, the undersigned was appointed as Adjudicating Officer, vide
order dated October 04, 2013, under section 15-I of SEBI Act and rule 3 of SEBI
(Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer)
Rules, 1995 (hereinafter referred to as Rules) to enquire into and adjudge under
section 15C of Securities and Exchange Board of India, Act, 1992 (hereinafter
referred to as SEBI Act) for the alleged violations of SEBI Circular No
CIR/OIAE/2/2011 dated June 3, 2011 read with Circular no. CIR/OIAE/1/2013 dated
April 17, 2013 by the Noticee.

SHOW CAUSE NOTICE, REPLY OF NOTICEE AND HEARING

5.

Show

Cause

Notice

No.

SEBI-NRO/AO/VKV/SKG/592/2014

dated

March 20, 2014 (herein after referred to as SCN) was issued to the Noticee under
Rule 4 of the Rules, to show cause as to why an inquiry be not held against the
Noticee and penalty be not imposed under Section 15C of SEBI Act, for the alleged

Adjudication order against M/s Regent Realtech Ltd.

Page 2 of 7

Brought to you by http://StockViz.biz

January 07, 2015

violations of non redressal of investors grievances and non obtaining of SCORES

authentication.

6.

The said SCN was served upon the Noticee on March 20, 2014 through Speed Post,
however, no reply was received from the Noticee towards the SCN.

7.

In the interest of natural justice and in order to conduct an inquiry in terms of rule
4(3) of the Rules, the Noticee was granted an opportunity of personal hearing on
September 24, 2014 at SEBI, Northern Regional Office, New Delhi, vide notice dated
September 05, 2014 which was served through Hand Delivery. Shri Ved Prakash
Arya, Managing Director of the Noticee attended the hearing. The Noticees main
submissions in respect of the charges in the SCN are given as under :
"1. The Noticee stated that currently there is no business/ turnover and trading in the
exchange.
2. Currently, there are no employees in the company.
3. The Noticee has not received any complaint.
4. The Director expressed inability to provide any update with regard to the
complaints pending on SCORES and sought time till September 29, 2014 for
additional submissions."

8.

The Noticee was granted another opportunity of hearing on September 29, 2014 at
SEBI, Northern Regional Office, New Delhi, to make additional submissions. The
submissions are as below:
"1. The Noticee submitted a copy of Certificate of Incorporation issued by Registrar
of Companies, Delhi for the name change
2. In lieu of PAN , the Noticee submitted a copy of acknowledgement of Income Tax
Return for Assessment year 2013-14, since it claimed PAN card to be non-traceable at
the moment.

Adjudication order against M/s Regent Realtech Ltd.

Page 3 of 7

Brought to you by http://StockViz.biz

January 07, 2015

3.

The Copy of form dated September 25, 2014, submitted by the Noticee for

obtaining authentication for SCORES.

4. The action taken/ status of complaints which were handed over to the Noticee
during the earlier hearing on September 24, 2014.

CONSIDERATION OF ISSUES AND FINDINGS

9.

I have taken into consideration the facts and circumstances of the case, material
available on record and oral submissions made during the hearing. In the present
matter, the following issues arise for consideration and determination.

a)

Whether the Noticee had violated the Circular no. OIAE/2/2011 dated June
3, 2011 read with Circular no. CIR/OIAE/1/2013 dated April 17, 2013?

b)

Does the violation, if any, on part of the Noticee attract monetary penalty
under Section 15 C of SEBI Act?

c)

If so, what would be the quantum of monetary penalty that can be imposed
taking into consideration the factors mentioned in section 15J of the SEBI
Act as well as internal guidelines of SEBI issued from time to time in this
regard?

10.

In terms of the Circular dated June 03, 2011, all listed companies were inter alia
required to view the complaints pending against them, redress them and submit
Action Taken Reports (ATRs) electronically in SCORES. The said Circular informed
the listed companies that complaints received by SEBI against them will be
electronically sent to them through SCORES at http://scores.gov.in/Admin for
redressal. As the SCORES is online electronic system, respective listed companies
were required to login to SCORES system electronically through a company specific
user id and password, to be provided by SEBI, for the purposes of accessing the
complaints of the investors against them, as uploaded in the SCORES. In order to

Adjudication order against M/s Regent Realtech Ltd.

Page 4 of 7

Brought to you by http://StockViz.biz

January 07, 2015

generate said user id and password, listed companies were required to submit the
details for authentication to SEBI, in the format annexed to the Circular. In the instant
case, it is however, noted that the Noticee did not submit the details to SEBI which
were required to be furnished in terms of the aforesaid Circular.

11.

SEBI Circular no. CIR/OIAE/1/2013 dated April 17, 2013, called upon all listed
companies to redress the grievances of investors and inform them within 30 days of
the receipt of the complaints. Further, the companies which were yet to obtain
SCORES user ID and password were required to send their details, as per format
annexed with the aforesaid circular, in hard copy to SEBI and by email to
scores@sebi.gov.in and obtain the SCORES user ID and password. Failure to obtain
the SCORES user ID and password within 30 days of issuance of the said circular
would not only be deemed as non redressal of investor grievances but also indicate
wilful avoidance of the same. Further, it stated that failure by companies to file Action
Taken Reports under SCORES within 30 days of date of receipt of the grievance may
also attract the provisions of Sec 15A(a) of the SEBI Act, 1992.

12.

The case of the Noticee is that they had not obtained SCORES Login ID and
password and not resolved pending complaints as on date of hearing i.e. September
24, 2014 at SEBI Northern Regional Office.

13.

In view of the above observations, I find that the allegation against the Noticee that it
has not complied with the Circular No CIR/OIAE/2/2011 dated June 03, 2011 and
Circular No. CIR/OIAE/1/2013 dated April 17, 2013 issued by SEBI within the
stipulated time, has been established beyond any reasonable doubt. Hence, the
Noticee is liable to monetary penalty under Section 15C of the SEBI Act, 1992.

14.

I also note that the Noticee, in its reply dated September 29, 2014 has stated that it has
applied for obtaining SCORES Login ID and password on September 24, 2014, which

Adjudication order against M/s Regent Realtech Ltd.

Page 5 of 7

Brought to you by http://StockViz.biz

January 07, 2015

is after the hearing which was held on September 24, 2014.

15.

I also note from the response filed by the Noticee vide letter dated September 29,
2014 that the Noticee has initiated action on both the complaints.

16.

Further, it is observed from the SCORES that:

i.

SCORES User-Id is created on 09/10/2014

ii.

As on the date of order there are 3 complaints pending including the 2 which
were pending on the date hearing.

17.

For determining the quantum of penalty under Section 15 A (a) and Section 15 C of
the SEBI Act, the factors stipulated in section 15 J of the SEBI Act, have been taken
into consideration which are reproduced as under;

15J - Factors to be taken into account by the adjudicating officer

While adjudging quantum of penalty under section 15-I, the adjudicating officer shall
have due regard to the following factors, namely:(a) the amount of disproportionate gain or unfair advantage, wherever
quantifiable, made as a result of the default;
(b) the amount of loss caused to an investor or group of investors as a result of
the default;
(c)

18.

the repetitive nature of the default.

It is difficult, in cases of such nature, to quantify the disproportionate gains or unfair

advantage enjoyed by an entity because of the default and also the magnitude of
consequent losses suffered by the investors. However, the lack of due diligence
demonstrated by the Noticee is a risk to the securities market and thus loss to the
investors to that extent.

Adjudication order against M/s Regent Realtech Ltd.

Page 6 of 7

Brought to you by http://StockViz.biz

January 07, 2015

Order

19.

Taking into account the violation involved and after considering all the facts and
circumstances of the case and exercising the powers conferred upon me under Section
15-I of the SEBI Act, 1992 read with Rule 5 of SEBI (Procedure for Holding Inquiry
and imposing penalties by Adjudicating Officer) Rules, 1995, I hereby impose a
penalty of Rs.3,00,000/- (Rupees Three Lakhs Only) on the Noticee, under section
15C of the SEBI Act, 1992. I am of the view that the said penalty would
commensurate with the aforesaid failure committed by the Noticee.

20.

The Noticee shall pay the said amount of penalty by way of Demand Draft in favour
of "SEBI Penalties Remittable to Government of India", payable at Mumbai within 45
days of receipt of this order. The said demand draft shall be forwarded to the Deputy
General Manager, Office of Investor Assistance and Education, Securities and
Exchange Board of India, Northern Regional Office, 5th Floor, Bank of Baroda
Building, 16, Sansad Marg, New Delhi-110001.

21.

In terms of Rule 6 of the Adjudication Rules, copy of this order is being sent to the
Noticee and also to SEBI.

Date: January 07, 2015

Vijayant Kumar Verma

Place: New Delhi

Adjudicating Officer

Adjudication order against M/s Regent Realtech Ltd.

Page 7 of 7

Brought to you by http://StockViz.biz

January 07, 2015