CIS: Sebi asks Suvidha Farming to refund investor money

Cracking the whip on illegal money-pooling schemes, markets regulator Sebi today asked Suvidha Farming and Allied Limited and its directors to refund investors the money it has collected through dubious schemes.
According to the order, the company mobilised about Rs 28.22 crores from 2,69,905 investors through Collective Investment Schemes (CIS)without obtaining the regulator's approval.
The money which was collected between 2010-11 and 2013-14 was used for purchase of agricultural/ barren lands and then making it fit for agriculture usage and developing farms wherein cows, goats and sheep are reared.
"Having concluded that the activities of the company are CIS... The same were carried out without obtaining registration from SEBI, suitable enforcement action should necessarily follow in the interest of investors," Sebi said ordering a refund along with due returns promised to the investors within three months.

Further, the regulator asked the the Faridabad-based firm and its directors to wind up these schemes.
Sebi also barred the company and its present and former directors - Vinod Kumar Shankhwar, Rajendra Karn Rajpoot, Pardeshi Ram, Jagdish Bisvas and Rajneesh Dutta - for four years.

It also said that the company and its directors cannot sell any of the assets of the company except for the purpose of making refunds to its investors.
In case the orders are not followed, Sebi would make a reference to the state government/ local police to register a civil/ criminal case against the firm, its promoters, directors.

Besides, it would make a reference to the Ministry of Corporate Affairs, to initiate the process of winding up of the company.
Further, the ban on the firm and its present and former directors would continue even after four years, till the refund is made.