Sebi bars Garima Homes from fund pooling activity

Cracking down on an illicit realty investment activity, Sebi today barred Garima Homes and Farm Houses from raising funds from the public with immediate effect as well as not to launch any new schemes.
Based on a preliminary probe, the Securities and Exchange Board of India (Sebi) found that the Delhi-based company was running 'collective investment schemes (CIS)' without obtaining requisite certification.
In an order today, Sebi whole time member S Raman said: "I find no other alternative but to take recourse to an interim order against Garima Homes and Farm Houses and its past and present Directors for preventing them from further carrying on with the fund mobilising activity by launching 'collective investment scheme',without obtaining registration from Sebi".

Consequently, the company and its six directors have been asked "not to collect any fresh money from investors under its existing schemes" and "not to launch any new schemes or plans or float any new companies to raise fresh moneys".
Additionally, the company and its directors have been directed not to dispose any assets and properties obtained from the funds collected, while the entities also cannot divert money raised from the public.
Further, the entities have been asked to "immediately submit the full inventory of the assets including land obtained through money raised by Garima Homes" as well as furnish withing 15 days details related to the scheme.

Sebi's Indore office had received information from a complainant that Garima Homes was indulging in improper fund mobilisation activities.
As per the schemes, the company offered investment in plot of land of sizes from 800 sq ft onwards.