Clamping down on an unauthorised real estate investment scheme, Sebi today restricted Viswas Real Estates and Infrastructures India and its directors from raising funds from investors.
The Securities and Exchange Board of India (Sebi) found that the Hyderabad-based firm had mobilised funds from public by promising them plots of land in its real estate ventures without necessary approvals from Sebi.
It was alleged that Viswas Real Estates had collected an amount of Rs 30 crore by deceiving public through its investment schemes.
Sebi noted that Viswas Real Estates "has not obtained any certificate of registration under the regulations for its fund mobilising activity from the public" and it was the regulator's mandate to ensure that no investors are defrauded by the company.
Consequently, Sebi has asked the firm and its directors -- Vaka Saradhi and Eshararao Gundala -- "not to collect any fresh money from investors under its existing schemes" and "not to launch any new schemes or plans or float any new companies to raise fresh moneys".
The company and its directors also have to "immediately submit the full inventory of the assets including land obtained through money raised by Viswas Real Estates and Infrastructures India" to Sebi.
Further, the company cannot dispose of any of the properties or alienate the assets including land obtained directly or indirectly through the money raised and cannot divert any of these funds.
Sebi has also asked the company and its directors to furnish all the information/details sought by the market regulator within 15 days.
The information is with respect to details of amount mobilised and refunded till date, scheme wise list of investors and their contact numbers and addresses, audited accounts for the last three years, among others.
The market regulator had received a complaint dated March 6, 2014 against Viswas Real Estates alleging that the firm had collected an amount of Rs 30 crore from the public under its 'Viswas Own Your Lumpsum Property Advance Scheme Agreement Bond Monthly Plans'.
