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Cracking down on a fraudulent realty investment scheme, Sebi has barred Ecogreen Real Estate, its directors and promoters from mobilising funds from public investors as well as from launch any new scheme.
Preliminary probe by Securities and Exchange Board of India (Sebi) found that the Uttar Pradesh based company was inviting applications to book plots of residential/commercial land under 'Land-Linked - One Time Payment Plan' scheme.
This plan was in the nature of unauthorised 'Collective Investment Scheme (CIS)'.
In an order dated March 26, Sebi said that "it prima facie appears that Ecogreen Real Estate is running a collective investment scheme without obtaing a certificate of registration from Sebi as required under...The CIS Regulations".
Accordingly, Sebi has directed Ecogreen and its promoters/ directors not to collect any money from investors and not to launch any new schemes.
Besides, the company has been asked to immediately submit the full inventory of assets owned by it out of the amounts collected from the investors under the existing schemes.
The company and its directors/promoters have been also been barred from diverting the funds raised from the scheme as well as from disposing of any assets with respect to the plan.
Further, Sebi has directed the entities to submit details of amounts mobilised and refunded, among other information. The company and its directors/promoters have been asked to file their replies within 15 days from the date of the order.
Sebi had received communication in 2011 regarding an advertisement by Ecogreen on its real-estate scheme.
As the company failed to provide any information to the Sebi regarding its scheme, the market regulator proceeded in the case with the material available with it including information from Registrar of Companies, Kanpur.
It was observed by Sebi, that Ecogreen had invited funds from investors for the "purchase and development of plots" in multiples of Rs 5,000 for a period of 5/10 years.
Sebi noted that the activity of fund mobilisation by Ecogreen under the scheme with a resultant promise of returns was "in the nature of collective investment scheme".
The directors/promoters of the Ecogreen against whom the order has been passed are -- Avneesh Verma, Chandra Prakash Verma, Ajaykumar and Ram Samujh Yadav.
