CIS case: Sebi confirms restrictions on Maitreya Plotters

Sebi today confirmed its order against Maitreya Plotters and Structures and its directors that restricted the firm and the company from running illicit investment scheme in name of realty business and raising funds from public through such activities.
According to the market regulator, documents furnished by the company indicate that it has collected such large amounts of money from 77 investors.
"Thus the prima facie view taken in the interim order that such money was collected from investors (public) cannot be ignored, till a conclusion is arrived at," the Securities and Exchange Board of India (Sebi) said in an order.

"...Hereby confirm the directions issued vide the SEBI interim order dated August 30, 2013 against Maitreya Plotters and Structures Private Ltd and its directors, Varsha Madhusudan Satpalkar and Janardan Arvind Parulekar," it added.
On August 30, 2013, Sebi through an interim order had pursuant to a preliminary enquiry prima facie found that the features of the 'scheme towards booking or purchase of plot of land' as offered by Maitreya did not show any resemblance to the real estate business but operated as a disguise to mislead and attract investment from the general public.
Accordingly, the regulator had Sebi has directed Maitreya Plotters and its Directors not to collect any more money from investors including under the existing schemes.

Besides, the entities had been asked not to launch any new schemes, not to dispose any of the properties or assets as well not to divert funds raised from public.
In its latest order today, Sebi noted, among others, that inspite of directing the company not to divert funds kept in its bank accounts, there have been several instances of debit entries in the names of various persons.
While the company denied that it is operating a collective as alleged in the interim order, Sebi said that the "findings made in the interim order cannot also be discarded at this stage, merely on basis of such denial by the company".