Sebi bans Skylark Land, directors; asks to refund investors

In a major crackdown on illegal money pooling schemes, capital markets regulator Sebi today banned Madhya Pradesh-based Skylark Land Developers and its directors and asked the entities to refund the money collected from investors.
According to the Securities and Exchange Board of India (Sebi), the company was raising money from thousands of investors in the state through collective investment schemes without taking any approval from the regulator.
Last month, the regulator had slapped a fine of Rs 5 crore on the firm and its directors for not providing information for the probe of complaints against it.
Skylark Land Developers was soliciting money from the investors on promise of high returns under a scheme for purchase and development of agricultural land.

The funds were collected between 2010-11 and 2012-13.
The company and its directors -- Dilip Kumar Jain, Ram Shankar Yadav, Durga Prasad Yadav, Jaihind Kumar, Anand Kumar Gupta and Santosh Kumar Pandey -- have been banned from the securities market for four year.

"In view of such unregistered CIS activities carried on by the company, it becomes necessary to issue suitable directions in the interest of investors and the securities market," Sebi said.
Through an interim order in December last year, Sebi had already restrained the entities from the securities market.
The regulator has directed the company and its four directors -- Dilip Kumar Jain, Ram Shankar Yadav, Durga Prasad Yadav and Jaihind Kumar -- to make the refund within three months and thereafter submit a winding up and repayment report within 15 days.

It also said the company and its directors cannot sell any of the assets of the company except for the purpose of making refunds to its investors.
In case the company fails to comply with the orders, Sebi would make a reference to the state government/ local police to register a civil/ criminal case against the firm, its promoters and directors.
Besides, it would make a reference to the Ministry of Corporate Affairs to initiate the process of winding up of the company.
Further, the ban on the firm and its directors would continue even after four years till the refund is made.

The order shall come into force with immediate effect, Sebi said.