Sebi bars Shree Sai Spaces from raising funds from public

Says company is using JV to mislead public in its bid to raise funds

Market regulator Sebi has barred Shree Sai Spaces Creations and its directors from raising money from investors for a solar energy generation project, alleging that it is a Collective Investment Scheme.
    
Sebi said: "It is evident that the fund mobilising activity of Shree Sai Spaces, promising estimated returns/ profit, has been camouflaged by it by way of a joint venture participation for the development of solar energy generation only to mislead and attract investment from the general public, which in essence satisfies all the conditions of CIS."
    
It also said the company was inviting funds from the public for its 'joint venture participation project for solar energy generation' without due registration with it.

    

The firm was receiving proposals for installation of solar energy units from many firms, it added.
    
In an order dated January 23, Sebi stated that Shree Sai Spaces has to be prevented from carrying on with 'collective investment scheme (CIS)' activities, and asked it and its five directors "not to collect any money from investors from its existing project/scheme or to launch any new project/scheme".
    
The directors are: Suresh L Srivastav, Laxmi S Shrivastav, Ritesh K Shrivastav, VivekKumar Suresh Srivastav and Rajkumar Laxman Konde.
    
The Securities and Exchange Board of India received a complaint on October 6, 2013, alleging illegal mobilisation of funds by Shree Sai Group of Companies through a 'joint venture participation project'.

    
The market regulator found that the investors who are interested in the scheme were made to enter into an MoU with Shree Sai Spaces. The funds were collected against the development cost and purchase consideration of the product (solar energy generation panels and a contiguous piece of land to install these panels).
    
Sebi has asked for the full inventory of the assets owned by Shree Sai Spaces out of the amounts collected from the investors under its existing schemes.
    
The entities have also been ordered not to dispose of the properties or alienate the assets of the existing scheme, and not to divert any funds raised from public.

    
Further, they have to furnish all the information sought by Sebi with regard to scheme-wise list of investors and their contact numbers and addresses along with the details of amount mobilised and refunded.