Sebi has turned down Nicer Green Housing and Infrastructure Developers and its directors' request seeking more time for refunding investor money, saying the plea lacks "bona fides" and fails to invoke faith with respect to compliance.
In its submission to Sebi, Nicer Green and its directors had requested for a total of 36 months' time - 18 months to develop the land and further 18 months to sell the land - for making the refund of about Rs 4 crore to its customers.
Further, the company had also said the development activities on the land bank owned by it could not be undertaken earlier on account of Sebi's interim order passed in July 2014 and also adverse actions taken by other authorities including the local police against the firm and its promoters or directors
The firm, which was engaged in the business of sale and purchase of real estate and properties, claimed to have refunded Rs 27.48 crore out of Rs 31.71 crore collected from investors.
According to Sebi, the company had raised the amount through unauthorised collective investment scheme (CIS).
However, the regulator said its interim order was passed without any restriction being imposed on the company for undertaking development activities on its land bank. Further, apart from the statement that its director and promoter Pipal Singh was arrested by the Punjab Police in May 2016, Nicer Green has not brought on record any other adverse actions taken by other authorities.
Besides, Sebi said in the representation, they did not furnish "the mode and the manner in which the balance payment would be made to the remaining investors".
"It appears doubtful that the company and its directors will be in a position to effectively carry out/implement any development activities in the time period sought by them from Sebi considering the adverse actions taken by other authorities such as the detention of Singh," Sebi Whole Time Member G Mahalingam said in an order dated June 1.
He further said the request made by the company and its directors "lacks bona fides and fails to invoke faith regarding compliance even where extension of time may be granted".
"I, therefore, find that the request made by Nicer Green and its directors for grant of 36 months' time for making refund to its customers, cannot be acceded to," Mahalingam said adding that they have "clearly resorted to dilatory tactics and suppression of facts from Sebi".
Through an interim order passed in July 2014, Securities and Exchange Board of India (Sebi) had barred Nicer Green and its directors from raising funds from public and from launching any new investment plans.
The regulator reiterated the same in the final order passed in November 2015 and had also directed the company to refund the money collected from investors along with returns.
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