CIS case: SAT allows KBCL India to file fresh appeal

The Securities Appellate Tribunal has allowed Uttar Pradesh-based KBCL India Ltd, alleged of running illegal realty investment scheme, to file a fresh appeal challenging Sebi's order against the firm, within two weeks.
Sebi had on May 26, this year, directed KBCL (earlier known as Kalpataru Biotech Corporation) and its directors -- Rakesh Kumar, Vishvnath Pratap Singh and Shashi Kant Mishra -- to wind up their scheme as well as refund the money raised from investors with returns within a period of three months.
The order had followed a probe into allegations that the company had mobilised funds amounting to Rs 118.69 crore through unauthorised collective investment schemes (CIS).

Subsequently, the company had challenged Sebi's ruling in the matter before the tribunal.
However, the company and its directors later sought the tribunal's permission "to withdraw appeal with liberty to file fresh appeal by annexing all relevant documents within a period of two weeks".
In an order dated September 3, the tribunal said that the "appeal is allowed to be withdrawn with liberty as prayed".

The Securities and Exchange Board of India (Sebi) had found that the company was running a 'collective investment scheme'(CIS) without requisite approvals and registration.
Besides ordering refund, the market regulator had also barred KBCL from collecting any funds from public as well as had also restrained the company and its directors from the capital market till all its schemes are wound up and the funds repaid.

KBCL had launched a scheme for the purchase and development of plot/land inviting investment from the public.
Based on material available on record, Sebi had observed that the scheme by KBCL "does not show any resemblance to real estate business or transaction but rather operates as a disguise to mislead and attract investment from the general public towards the fund mobilising activity of KBCL".