Capital markets regulator Sebi today barred Parivar Dairies and Allied Ltd (PDAL) from raising money from the public.
It was alleged that thousands of people in Madhya Pradesh were cheated by PDAL under the garb of various schemes, which used to collect deposits from them with a promise to pay the money back with an interest of 15-20 per cent.
The Securities and Exchange Board of India (Sebi) found that Parivar Dairies and Allied was running 'collective investment schemes (CIS)' without obtaining registration from the regulator.
The company was inviting investments from general public through its 'cattle booking schemes'. The firm was engaged in the business of selling cattle, cow, buffalo, sheep, goats and dairy products to its customers on receipts of sale price of goods from the customers.
"The schemes offered by PDAL and PDA Foundation inviting investments from public," when considered in the light of peculiar characteristics and features of such schemes, prima facie satisfy all the conditions of a CIS, Sebi said.
Accordingly, Sebi has directed the company and its directors -- Basant Lal Sharma, Ahibaran Singh, Chandra Bhan Yadav and Pradeep Kumar Sharma -- and PDA Foundation and its Trustees -- Neeraj Singh and Bhanu Pratap Singh -- "not to collect any fresh money from investors under its existing schemes" as well as "not to launch any new scheme".
They also have "to immediately submit the full inventory of the assets, including land obtained through money raised."
Besides, the company and its directors have been barred from disposing of or alienating any of the properties or assets owned or acquired through the money raised.
Further, they can't divert any funds raised from public at large which are kept in bank account of the company. They have to furnish all details of its investors, among other information, to Sebi.
These directions would take effect "immediately and shall be in force until further orders," it said.
