Order in the matter of Eltrol Ltd

Under Sections 11B, 11D and 11(4) of Securities and Exchange Board of India Act, 1992

1. Securities and Exchange Board of India (hereinafter referred to as SEBI), upon noticing sudden variation in price and volume in the shares of Eltrol Ltd. (hereinafter referred to as Eltrol) presently known as Shree Mahaganga Sugar Mills Ltd. conducted a preliminary examination of the dealings in the scrip. The preliminary examination revealed that the price of the scrip of Eltrol (having face value Re.1) at Bombay Stock Exchange Ltd. (hereinafter referred to as BSE) opened on January 05, 2005 at Rs.0.80 and the same increased to Rs.6.90 on August 14, 2005. Substantial variations in the daily traded volumes of scrip of Eltrol were also observed with the lowest volume on July 1, 2005, when only one share was traded and the highest being on August 26, 2005, when 1,36,70,180 shares were traded.

2. Pursuant to the preliminary investigation, SEBI vide an ad interim ex-parte Order dated October 05, 2005 issued under Sections 11B, 11D and 11(4) of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as SEBI Act), pending inquiry, directed Eltrol not to issue any equity shares or any other instrument convertible into equity shares or alter its capital structure in any manner till further directions in this regard. Eltrol was also directed to cease dealings in the securities market in any manner, directly or indirectly, till further direction. Further, the directors of Eltrol namely, Mr. Sanjay Tripathi, Mr. Deepak Rathod, Mr. Niraj Sanghvi and Mr. Chittarmal Sharma were also directed not to buy, sell, pledge or deal in securities of Eltrol, directly or indirectly, till further directions in this regard. Vide this order, suitable directions were also issued against 7 brokers of National Stock Exchange (hereinafter referred to as NSE), 11 brokers of BSE, 10 trading clients at BSE and

25 clients apparently connected with/ related to each other.

3. The said interim order also provided the entities/ persons to whom directions were issued to file their objections, if any, to the order within 15 days from the date of order and, if they so desire, avail themselves of an opportunity of personal hearing. However, only Eltrol and a broker namely Harikishan Hiralal filed their objections and requested for a personal hearing in the matter. Thereafter, an opportunity of inspection was afforded to Eltrol, which was conducted on November 23, 2005. Pursuant to this, an opportunity of personal hearing was granted to Eltrol on January 25, 2006. Thereafter the investigation in the matter was completed and suitable actions against the entities covered in the interim order and others, had been initiated. I note that some of the proceedings have been culminated by passing of the final orders. The approved actions in respect of the persons covered under the ad interim ex-parte Order and the status thereof are tabulated below: S.No Name of entity Action approved Action taken

1. Eltrol Ltd. 11B Debarred for 5 years.

2. Sanjay G. Tripathi 11B

3. Niraj Sanghvi 11B

4. Deepak Rathod 11B Debarred for 6 months.

5. Chittarmal Sharma Warned

6. P.J. Chaudhary Adjudication Penalty Rs.1 lac

7. Sanchay Fincom Ltd. Adjudication Penalty Rs. 50,000

8. M/s. Harikishan Hiralal Adjudication No Penalty

9. Bakliwal Financial Services (India) P. Ltd. Adjudication No Penalty

10. JMP Sec. Pvt. Ltd. No Action

11. Amit Sahita Finance Pvt. No Action

12. M.R. Share Broker Ltd. No Action

13. S.M. Nissar No Action

14. NCJ Share & Stock Brokers No Action

15. Adolf Pinto No Action

16. Indus Portfolio P. Ltd. No Action

17. S.S. Corporate Securities Ltd. No Action

18. Indus Portfolio (P.) Ltd. No Action

19. Indiabulls Securities Ltd. No Action

20. Insight Share Brokers Pvt. Ltd.* No Action

21. Bakliwal Financial Services (India) P. Ltd. No Action

22. SSJ Holdings Private Limited No Action

23. Insight Share Brokers Pvt. Ltd.* No Action

24. Pravinkumar Jain (Maars Software) Adjudication Penalty Rs.1 lakh

25. Priyam Securities (Premsukh Kandelwal) Adjudication Penalty Rs.50,000

26. Navin Patel Adjudication Penalty Rs.7 lacs

27. Jayeshkumar Shah Adjudication Penalty Rs.7 lacs

28. Dalsukhbhai Patel Adjudication Penalty Rs.7 lacs

29. Vinod Patel Adjudication Penalty Rs.7 lacs

30. Ramniklal Patel Adjudication Penalty Rs.5 lacs

31. Vikas Naknavar Adjudication Penalty Rs.5 lacs

32. Vikas Bengani Adjudication Penalty Rs.10,000 (SAT No Penalty)

33. Anil Solanki Adjudication Pending

34. Ramdas Kshirsagar, Director of IFSL Ltd. Adjudication Pending

35. Charu Niraj Sanghvi Adjudication Pending

36. Vikram Singh Rajput Adjudication Pending

37. Shivaram Motilal Meena Adjudication Pending

38. Kusum Deepak Rathod Adjudication Pending

39. T.H. Vakil Shares And Securities P. Ltd. Adjudication Pending

40. Mangalaben A Doshi Adjudication Pending

41. Ashwin D. Doshi Adjudication Pending

42. Viral C. Shah Adjudication Pending

43. Jignesh P. Lakhlani Adjudication Pending

44. Navin Trikamdas Thakkar Adjudication Pending

45. Tarun V. Shah Adjudication Pending

46. Shilpa P. Sakpal Adjudication Pending

47. Amit Easy Finance Ltd. Adjudication Pending

48. Harsiddhi Man-Power Services Pvt. Ltd. Adjudication Pending

49. Shreerath Marketing Private Ltd. Adjudication Pending

50. Lila Laboratories (India ) Ltd. Adjudication Pending

51. Hitendra Chaturbhai Makwana Adjudication Pending

52. Karni Ajaysingh Jagdishsingh Rathore Adjudication Pending

53. Mahesh Vora (JMP Securities Pvt. Ltd.) No Action

54. Amit Sahita Finance Pvt. Ltd. No Action

55. Bhagwandas Jaju No Action

56. Shailesh Nissar No Action

57. Naresh Jain No Action

58. Anil Kantilal Shah No Action * The name of Insight Share Brokers Pvt. Ltd. has been inadvertently mentioned twice in the ad interim ex-parte Order

4. Therefore, taking into consideration the facts and circumstances of the case and various actions initiated against the aforesaid persons, I am of the view that the interim directions need not be continued in respect of them.

5. Accordingly, I, in exercise of the powers conferred upon me under Section 19 of the SEBI Act read with Sections 11, 11B and 11(4) thereof, do hereby revoke the interim directions issued vide ad interim ex-parte order dated October 05, 2005, against all the entities mentioned in the table at paragraph 3 above, with immediate effect.

6. Wherever, the adjudication proceedings are pending, the same shall be disposed of by the concerned Adjudicating Officers, in accordance with the SEBI Act and SEBI (Procedure for Holding Enquiry and Imposing Penalty by Adjudicating Officer) Rules, 1995, and pass an appropriate order on merits, at the earliest, uninfluenced by this Order. DATE : 28/JULY/2010 PRASHANT SARAN PLACE: MUMBAI WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA