Sebi has barred Rich Infra Developers India and its four directors from the capital markets for at least four years and also directed them to refund money collected illegally from investors.
The directors have also been restrained from holding key managerial position of any listed company for four years, the Securities and Exchange Board of India (Sebi) said in an order dated September 27.
The firm was involved in illegal mobilisation of funds from the public through schemes which were deemed to be CIS without obtaining registration from Sebi, thereby contravening CIS and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, it said.
As per the regulator, Rich Infra had submitted that it had collected Rs 41.82 crore from more than 12,000 investors through its scheme for 'sale of plots of land and its development'. In financial year 2012-13, the firm received Rs 4.7 crore from investors as advance.
Moreover, Sebi noted "from the balance sheet of Rich Infra that it has mobilized money even after September, 2013."
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