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Sebi refuses to lift ban on Citrus in 'holiday plan' scheme

Sebi through an interim order in June this year had restrained the firm and its directors for mobilising money from investors through unauthorised CIS activities

Press Trust of India  |  New Delhi 

regulator has refused to lift a ban on and its directors in a 'collective investment scheme' (CIS) case promising returns on 'holiday plans'.

Securities and Exchange Board of India (Sebi) through an interim order in June this year had restrained the firm and its directors for mobilising money from investors through unauthorised activities.


In an fresh order, passed yesterday, said "activities of the company and its directors are prima facie found to be illegal and in violation of the directions, revoking the directions issued vide the interim order, at this stage will not be in the interest of the investors."

Accordingly, the regulator has confirmed "the interim order dated June 3, 2015 against Ltd, Omprakash Basantlal Goenka, Prakash Ganpat Utekar, and "

This order will continue to be in force till further directions by

The capital watchdog found that Citrus has about 4.5 lakh members under different holiday plans and as on March 31, 2013, it had generated sales to the tune of Rs 770 crore and the amount went up to Rs 1,600 crore at the end of March this year.

had began the probe after receiving a complaint alleging that Citrus was running a 'Ponzi Scheme' and 'mis-selling' its schemes to the public.

It was also alleged that Citrus refused to refund the capital invested by the complainant in June 2012, when she approached the company for refund of the money. The company replied that she would "get the refund only after 4 to 5 years without interest."

had received several investors' complaints against Citrus alleging that directors of Royal Twinkle Star Club are now running their through Citrus.

The regulator has already passed an order against Royal Twinkle and its directors, restraining them from collecting fresh money from investors through existing or new schemes.

First Published: Tue, August 25 2015. 14:13 IST
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