 "SAT gives Maitreya Services 18 to repay investors")
Maitreya was found by Sebi to have collected more than Rs 700 crore from over 20 lakh investors through such schemes being run in name of real estate business.
Following the probe, the market regulator had ordered the company to refund the money garnered through such scheme.
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After hearing the company's appeal, SAT on July 23, 2013 upheld Sebi order and asked it to refund the money to investors within six months.
However, the company again appealed before SAT, which in its latest order passed yesterday, modified the time frame for refund by Maitreya Services to 18 months.
The fresh directions came after SAT observed that in an identical case of Alchemist Infra Realty, the company was granted 18-month time period to refund the money to investors.
SAT noted that Alchemist was given 18 months, even though it had about 15 lakh investors to refund as against over 20 lakh investors with Maitreya Services.
"Therefore, we are of the considered opinion that a mistake has inadvertently crept in the order in as much as the appellant (Maitreya Services) has been granted only 6 months time for complying with the Sebi's order in question," SAT said in the order dated August 28.
"...We find that there is a valid ground to modify the order dated July 23, 2013 only to the extent that 6 months time granted to the appellant to comply with the order of Sebi...Shall be read as 18 months," SAT added.
The time-frame was given with a rider that the company would submit a report to Sebi after six months about the developments regarding the payment to investors.
In March, Sebi had barred Maitreya Services and its directors from the securities market till the time all its collective investment schemes were wound up. It had decided to initiate prosecution proceedings against them.
Sebi found that the company had launched various schemes under which money was collected from the public. These schemes differed on the basis of the periodic payment to be made by the investor and the time period for which such investments were to be made.
In the course of its inquiry, Sebi found that the company had launched and operated the scheme without registering with it for the same and an amount of Rs 804 crore was outstanding with it to be repaid to investors.
Sebi's probe found that the the company had mobilised Rs 1,332 crore from public as "advances" as on March 31, 2011, and had repaid Rs 538 crore as "repayment" to investors - resulting into an amount of Rs 794 crore as outstanding to be repaid as on that date.