The company and its directors -- Mrinal Atal, Surendra Kumar and Shailendra Prasad Badoni -- have also been barred from the capital market for four years.
According to the Securities and Exchange Board of India (Sebi), the firm and its three directors were allegedly running CIS in the name of "membership club for tour travel".
Sebi said the CIS was being run without obtaining its approval.
The company had offered monthly returns to investors for a period of 12, 18, 45 and 48 months, as per the regulator.
Also Read
In view of the violation committed by the directors and the company, Sebi said that they are liable to wind up the scheme and repay the amount collected as per terms of the offer.
Sebi directed the entities to refund the money within 3 months of the order and then submit a winding up and repayment report to the regulator within 15 days.
In case they fail to comply with the order, Sebi said Zeestar Multi Club and its directors will continue to be barred from securities market, even after the completion of four years of restrictions imposed on them "till all the Collective Investment Schemes are wound up and all the money mobilised through such schemes are refunded to its investors with returns which are due to them".
Further, it would make a reference to state government/ local police and register a civil/criminal case against Zeestar Multi Club and would make a reference to the Ministry of Corporate Affairs to initiate the process of winding up of the firm.