Markets regulator Sebi today ordered Sunshine Infrabuild Corporation to refund the money, that it illegally raised from people, along with interest.
In addition, the company and its directors have been barred from the securities market for four years.
The Securities and Exchange Board of India (Sebi) found Sunshine Infrabuild had allotted various types of debentures to over 8,000 investors and had raised Rs 26.62 crore during the 2010-11 to 2012-13.
Since shares were allotted to more than 50 people, the company had, 'prima facie', violated the public issue norms, Sebi said.
Under the rules, a public issue requires compulsory listing on a recognised stock exchange. The company was also required to file its prospectus, which it failed to do.
In its order, Sebi asked the firm and its directors -- Surendra Singh Baghel, Dharm Singh Kushwah, Mukesh Singh, Banwari Lal Baghel, Bakil Singh, Sanjeev Singh and Rajveer Singh -- to refund money collected from the investors with an interest of 15 per cent per annum compounded at half yearly intervals.
Besides, they have been directed to issue public notice, in all editions of two national dailies (one English and one Hindi) and in one local daily with wide circulation, detailing the modalities for refund, including details of contact persons within 15 days.
They have been "restrained and prohibited from buying, selling or otherwise dealing in the securities market, till the expiry of four years from the date of completion of refunds to investors."
After completing the repayments, the firm would have to file a report of such completion with Sebi within three months.
In case Sunshine Infrabuild fails to comply with the order, Sebi would make a reference to the state government/ local police to register a civil/criminal case against the company and its directors.
It would also make a reference to Ministry of Corporate Affairs to initiate the process of winding up the firm.
