Sebi asks Viswas Real Estates to refund money within 3 months

Clamping down on an unauthorised real estate investment scheme, market regulator Sebi has asked Hyderabad-based Viswas Real Estates and Infrastructures India Ltd to refund money raised from investors within three months.
Securities and Exchange Board of India (Sebi) has also barred the company from accessing the securities market "for a period of four years" besides restraining it from raising money from investors through any Collective Investment Schemes (CIS).
According to the regulator, the company had mobilised funds from public by promising them plots of land in its real estate ventures without necessary approvals from Sebi.
It was alleged that Viswas Real Estates had collected an amount of Rs 30 crore by deceiving public through its investment schemes.

In an order, Sebi directed Viswas Real Estates and its directors -- Vaka Saradhi and Eshararao Gundala -- to "wind up the existing CIS and refund the money collected under the schemes with returns which are due to its investors ...Within a period of three months from the date of this order."
The company would have to submit a winding up and repayment report to Sebi, within 15 days of completion of the refund to the investors.

The company and its directors "shall abstain from collecting any money from the investors or launch or carry out any collective investment schemes including the scheme which have been identified as a collective investment scheme in this order," Sebi said.

Besides, Sebi would make a reference to the Ministry of Corporate Affairs, to initiate the process of winding up of Viswas Real Estates and would begin attachment and recovery proceedings against the company, in case of failure to comply with orders.
These directions would come into force with immediate effect.
The market regulator had received a complaint in March 2014 against Viswas Real Estates alleging that the firm had collected an amount of Rs 30 crore from the public under its 'Viswas Own Your Lumpsum Property Advance Scheme Agreement Bond Monthly Plans'.