Sebi asks former MADL directors to refund investors' money

Markets regulator Sebi today ordered four former directors of MARS Agrofarm Developers Ltd (MADL) to refund money raised fraudulently from public, along with interest.
Ajigul Haque, Seikh Sarafat Ali, Arup Bhattacharya and Sheik Saukat Ali were directors of the firm between November 2010 and December 2011.
The latest order comes more than a year after the regulator had directed the firm and its three other directors -- Sekh Sahadat Ali, Abu Taleb Mohammod and Tushar Kanti Kanti Samanta -- to refund the money which was raised from the public through Redeemable Preference Shares (RPS) without complying with the public issue norms.

MADL had mobilised Rs 25 lakh by issuing RPS to 237 investors during Financial Year 2010-11.
The regulator said in an order that Ajigul Haque, Seikh Sarafat Ali, Arup Bhattacharya and Sheik Saukat Ali should "jointly and severally" along with the company and others, refund the money.
Sebi reiterated its earlier direction, passed in February 2016, against the company and the three other individuals.

"The repayments and interest payments to investors shall be effected only through bank demand draft or pay order," the Securities and Exchange Board of India (Sebi) said.
The regulator also directed the four former directors to issue public notice, in all editions of two national dailies (one English and one Hindi) and in one local daily with wide circulation, detailing the modalities for refund, including details of contact persons including names, addresses and contact details, within fifteen days.

Sebi also said it "may initiate appropriate action" against the four erstwhile directors, including adjudication proceedings, in case of failure to comply with the directions of the regulator on expiry of three months from the date of the order.