SEBI finds ₹4.12 crore raised via unauthorized shares by Milani Techno Engineering

This order addresses SEBI's investigation into Milani Techno Engineering Limited (MTEL) and its directors regarding the alleged unauthorized public issue of Redeemable Cumulative Preference Shares (RCPS) in FY 2011-12, which raised ₹4.12 crore from 127 investors in violation of the Companies Act and SEBI Act.

Who it concerns: Milani Techno Engineering Limited (MTEL); Prithi Paul Singh Sethi; Rajesh Kumar Sharma; Sanjay Kumar Upadhyay; Shiva Nand Mishra; Vishwa Bandhu Vashishta; Deena Nath Maurya; Arwind Tiwari; Pashupati Nath Dixit; Ramendra Prasad Sharma; Mukesh Kumar Khare; Maiku Lal; Ram Vishal Telars; Surendra Singh; Ram Kishor Prajapati; Rajesh Singh Yadav; Sita Ram Prajapati; Bharat Subhash Prasad Maurya; Chhotelal Shukla

What SEBI found or ordered

• SEBI found that MTEL raised ₹4,12,20,000 from 127 investors via RCPS in FY 2011-12 without complying with public issue norms under the Companies Act, 1956 and 2013.
• SEBI alleged that directors serving during FY 2011-12 (Noticees 2-7) violated provisions related to the issuance of securities.
• SEBI alleged that directors who joined after FY 2011-12 (Noticees 8-19) failed to refund the money collected from investors.
• The order was issued under Sections 11(1), 11(4), 11A, and 11B(1) of the SEBI Act, 1992.
• The text provided contains the background, allegations, and hearing details but does not include the final directions, penalties, or refund orders issued by SEBI.

Also in the document

• The amount involved is ₹4.12 crore (₹4,12,20,000).
• The issuance occurred in FY 2011-12, prior to the current regulatory framework changes mentioned in the SEBI Circular of 2015.
• Several noticees claimed they were unaware of their directorship or that their signatures were forged, citing prior legal cases and CBI complaints against Dr. P.P.S. Sethi.