In a fresh crackdown on illegal money-pooling schemes, market regulator Sebi today barred Ally Multi-Trade India and its directors from mobilising funds from investors as well as from launching any new scheme.
A preliminary probe by the Securities and Exchange Board of India (Sebi) found that the company has collected Rs 1.76 crore from more than 700 investors by selling land.
The company under its schemes --Instalment Payment Scheme and Single Payment Schemes-- invited investments from public for the purchase and allotment of unidentifiable interest in undivided agricultural land upon payment in instalments or lump sum in accordance with the schemes.
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The money pooled will be utilised toward development of agricultural land and for conducting agricultural activities on the land and the investor will get forthcoming income as per the share.
This plan was in the nature of unauthorised 'Collective Investment Scheme (CIS)'.
"Ally Multi-Trade India Pvt Ltd (AMTPL) is engaged in the mobilisation of funds from the public under its schemes -Instalment Payment Scheme and Single Payment Scheme, which is in the nature of CIS...AMTPL has not obtained any certificate of registration under CIS regulations...," Sebi said in its order.
Accordingly, Sebi has directed barred Ally Multi-Trade India and its directors --Chetan Yashwant Thakur, Vijay Dattaram Chavan and Suryakant Sambhu Bhosle-- not to collect any money from investors and not to launch any new scheme.
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 have been also been barred from diverting the funds raised from the scheme as well as from disposing of any asset with respect to the plan.
The directions will take effect immediately and will be in force until further orders.
Sebi, received a communication in August last year, alleging illegal mobilisation of funds by Ally Multi-Trade India.
