Continuing its clamp down on illegal investment schemes, Sebi today barred Royal Twinkle Star Club, which has admitted to mopping up nearly Rs 670 crore through holiday plans, from raising more money from the investors.
Royal Twinkle Star Club Ltd (RTSCL) is part of diversified Mirah group which has interests in real estate and hospitality, among other areas.
Sebi has directed RTSCL and its directors -- Omprakash Basantlal Goenka, Prakash Ganpat Utekar, Venkatraman Natrajan and Narayan Shivram Kotnis -- not to collect "any more money from investors including under the existing schemes".
They have been barred from launching any new schemes as well as from disposing any of the properties or alienate any of the assets of the schemes.
Further, the market watchdog has asked these entities "not to divert any funds raised from public at large which are kept in bank account(s) and/or in the custody of the company."
As per the order, they have to furnish the list of investors with full particulars, including permanent account number (PAN), within 15 days from the date of receipt of this order.
RTSCL issues holiday plan certificates of confirmation to individual investors who purchase the holiday plans.
"RTSCL has admitted to raising a sum of Rs. 669.33 crore from a total of 3,68,833 investors under its Comfort Holiday Plan, Economic Holiday Plan and Luxury Holiday Plan," the order said.
Under the plans, holiday points are awarded to investors in any case the investor desires, the same can be rented out or sold in the open market through RTSCL.
"... The contribution made by investors in response to the Holiday Plans offered by RTSCL are pooled and utilised for providing various holiday facilities, and in case the said facilities are not availed, then providing compensation," the order noted.
In January 2012, the Securities and Exchange Board of India (Sebi) had received a complaint that RTSCL was collecting thousands of crores from gullible investors under the garb of 'Comfort Holiday Plan'.
It was also alleged that RTSCL was indulging in illegal deposit mobilisation involving guaranteed returns of 1.5 times in 4 years, 1.7 times the investment in 5 years, double in 6.5 years and 3 times in 9 years.
Sebi's Whole Time Member S Raman, in the order, said that steps have to be taken in the instant matter to ensure only legitimate investment activities are carried on by RTSCL and no investors are defrauded.
"In light of the same, I find there is no alternative but to take recourse through interim action against RTSCL for preventing it from further carrying on with its fund mobilising activity related to 'collective investment scheme', without registration from Sebi," it noted.
