SEBI v. Allied Computers International (Asia) Limited and others (round-tripped preferential allotment, 2022)

Judgment entered

Checked against the primary document on October 9, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

Report an error in this record (sebi-61471-market-abuse-2022) by email

A SEBI adjudicating officer fined eleven of twenty-two noticees Rs 2 lakh each in July 2022 after finding that a listed company routed its own money through a chain of conduit firms to help pay for part of a 2011 preferential allotment. The charges against the other eleven noticees were held not established.

The record

Structured fields for this action, as recorded in our case library.
Agency	SEBI (India)
Date filed	2022-07-29
Date resolved	2022-07-29
Court	SEBI adjudicating officer
Status	judgment
Asset class	equities
Instruments	Allied Computers International (Asia) Limited convertible warrants and shares
Venue	BSE
Criminal parallel	No
Defendants	Allied Computers International (Asia) Limited (entity) ; Hirji Kanji Patel (individual) ; Jabeen Tradelink Pvt Ltd (entity) ; Yantra Natural Resources Limited (entity) ; Prraneta Industries Ltd (now Aadhaar Ventures India Limited) (entity) ; Parasmani Planning and Development Pvt Ltd (entity) ; Jeenmata Commercial Pvt Ltd (entity) ; Lemongrass Investment Consultants Pvt Ltd (entity) ; Nextgen Health Solutions Pvt Ltd (entity) ; Innovation Infraestates Pvt Ltd (entity) ; VRC Technology Pvt Ltd (entity)
Techniques

What was ordered

Civil penalty: —
Disgorgement: —
Prejudgment interest: —
Total relief: —
Alleged gain: —
Penalty as published: 2.2m INR

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in INR. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

A SEBI adjudicating officer in Mumbai decided this matter on 29 July 2022. It concerns Allied Computers International (Asia) Limited, its managing director Hirji Kanji Patel, ten preferential allottees and ten firms described as conduits, twenty-two noticees in all.

SEBI investigated the company for the period November 2007 to September 2012. The company issued about 8.9 crore convertible equity warrants to twenty allottees on 1 March 2011 and about 1.08 crore to three more on 24 March 2011, at Rs 10 each. SEBI alleged from bank statements that the company's own money reached the allottees through intermediary firms and was then used to pay for the allotment, in breach of section 12A of the SEBI Act and Regulations 3 and 4(1) of the PFUTP Regulations.

The company and its managing director did not reply to the notice, which was served by newspaper publication, and did not appear, so the officer treated the allegations as unanswered. Six of the allottees showed that they had received money from other firms in exchange for allotting their own shares, filed the corresponding company-registry forms, and the officer gave them the benefit of the doubt and held the charges not established against them. Five other conduit firms were cleared because the officer found no evidence that they funded any allottee.

The order finds the charges established against the company, Mr Patel, the allottee Jabeen Tradelink, and eight conduit firms. It traces about Rs 2.8 crore of the roughly Rs 4.83 crore that Jabeen paid for its allotment back to the company through that chain, and finds that this misled investors about the capital the company was raising. It imposes a penalty of Rs 2,00,000 on each of those eleven noticees under section 15HA, Rs 22,00,000 in total.

The record does not show whether any appeal followed or what investors lost. No trading profit is stated.

No library technique fits cleanly, so the technique list is empty.

This library tags the matter as issuer-side fraud through round-tripped share-subscription funds, with no more specific library technique. The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

Timeline

2022-07-29 SEBI adjudication order

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Record added October 8, 2026. submit a correction.