Clamping down on unauthorised real estate investment plans, Sebi today barred two companies -- Raghav Capital & Infrastructure Ltd and Garima Real Estate & Allied Ltd -- as well as their directors from raising funds from public.
The Securities and Exchange Board of India has found that the two companies had launched a 'Collective Investment Schemes (CIS)' related to land without requisite certification from the market regulator.
Garima Real Estate had allegedly mobilised an amount of Rs 55.22 crore from more than 1 lakh investors.
Raghav Capital had allegedly collected nearly Rs 26 lakh from 303 investors from Uttar Pradesh, Bihar and Jharkhand, during May 1, 2012 to May 31, 2014.
To prevent the firms and their respective directors from further carrying on with its existing fund mobilising activity, Sebi has imposed several restrictions on them through two separate interim orders.
In the orders, Sebi has asked the companies and its directors "not to collect any fresh money from investors from its existing schemes" and "not to launch any new schemes or plans or float any new companies to raise fresh moneys".
It has also asked the companies not to dispose of any of the assets obtained through money raised. The company cannot also divert any funds raised from public.
Moreover, the firms has been asked to furnish information related to the schemes including investor details.
Sebi had begun probing the case against Garima after it received an order from the Madhya Pradesh high court to look into the dealing of various financial companies.
It was alleged that thousands of residents of Madhya Pradesh had been cheated by these finance companies like Garima under the garb of various schemes, inducing public to make deposits promising higher return of interest ranging from 15-20 per cent.
According to details filed by Garima with Sebi, the company claimed it had repaid an amount of Rs 45.87 crore to the investors.
In the other case, Sebi had come across a media report which stated that eight non-banking companies, including Raghav Capital, in Chhapra district had collected huge amounts of money from the public without obtaining any registration.
