Taking action against illegal investment schemes, capital markets regulator Sebi today ordered Kalpbut Real Estate to refund over Rs 15 crore to investors within three months, which it had illegally raised from them.
Besides barring the firm and its directors from capital markets for four years, Securities and Exchange Board of India (Sebi) also ordered Kalpbut Real Estate to pay 15 per cent interest annually along with the refund amount.
A probe by Sebi found that the company had raised more than Rs 15 crore from over 2,338 investors under ‘Collective Investment Scheme’ (CIS) related to plots of land, without getting necessary approval.
Accordingly, Sebi asked the company and its directors — Bhanu Pratap Singh, Krishan Pal Singh, Guddi Devi, Rajendra Singh Thakur, Parvesh Kumar Singh, Natthu Singh, Raksha Pal Singh, Devendra Pal Singh, Rajeshwari Sengar and Pooran Prakash — to “wind up the existing CIS and refund the money collected” with interest which are due to its investors within a period of three months.
The company would have to submit a repayment and winding up report, including the trail of funds claimed to be refunded, bank account statements indicating refund to the investors and receipt from the investors acknowledging the repayment.
In case the firm fails to comply with the orders, Sebi would initiate attachment and recovery proceedings, besides registering a civil/criminal case against Kalpbut Real Estate, among others.
In a separate CIS case, Sebi has prohibited Assure Agrowtech from raising fresh money from public with immediate effect.
Besides, it directed the company not to launch any new scheme.
Sebi found that the firm was running CIS without obtaining registration from the regulator.
As per Sebi, Assure Agrowtech garnered nearly Rs 60 crore from 1.3 lakh investors through its schemes ‘sale/purchase and development of poultry’. Further, the compay claimed to have repaid an amount of Rs 6.11 crore pertaining to 6,050 people.
Accordingly, Sebi has put several restrictions on the company.