Based on a preliminary probe, the Securities and Exchange Board of India (Sebi) found that Karmbhoomi was running 'collective investment schemes (CIS)' without obtaining requisite certification.
In an order today, Sebi whole time member S Raman said: "I find no other alternative but to take recourse to an interim order against Karmbhoomi and its directors for preventing them from further carrying on with its existing fund mobilising activity by launching CIS, without obtaining registration from Sebi in accordance with law".
Additionally, the company and its directors have been directed not to dispose any assets obtained from funds collected, while the entities also cannot divert money raised from the public.
Further, the entities have been asked to "immediately submit the full inventory of the assets including land obtained through money raised by Karmbhoomi" as well as furnish withing 15 days details related to the scheme.