Market regulator Sebi has ordered immediate closure of unauthorised collective investment schemes of Kim Infrastructure and Developers Ltd and also asked it to refund investors' money within three months.
The Securities and Exchange Board of India (Sebi) found that the company was inviting funds from the public for its 'land purchase scheme' without due registration with it.
"I find that the company is engaged in the fund mobilising activity from the public by floating/ sponsoring/ launching 'collective investment schemes' (CIS)," Sebi Whole Time Member Prashant Saran said in a 26-page order.
With immediate effect, Kim Infrastructure and Developers and its directors -- Ravinder Singh Sindhu, Rajesh Kumar, Sukhpal Singh Barar and Sanjib Sikdar -- have been asked to abstain from collecting any money from the investors or launch any CIS.
Besides, they have been asked to wind up all existing CIS of the company and refund the collected monies, with returns which are due to its investors as per the terms of offer, within three months.
Thereafter, within a period of 15 days, they have to submit a winding up and repayment report to Sebi, including the trail of funds claimed to be refunded, bank account statements indicating refund to the investors and receipt from the investors acknowledging such refunds.
Sebi, in its yesterday's order, has also asked them to immediately submit a complete and detailed inventory of the assets owned by Kim Infrastructure and Developers, while they have been barred from alienating or disposing off or selling any of the assets of the company, except for the purpose of making refunds to investors.
If the company and its directors and promoters fail to comply with these directions, they would be barred from securities market and Sebi would make a reference to the State Government/Local Police to register a civil or criminal case against them "for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds".
Sebi further said it would also make a reference to the Ministry of Corporate Affairs to initiate the process of winding up of the company, while it "shall also initiate attachment and recovery proceedings" in the event of failure to comply with its directions.
