Sebi directs Adel Landmarks to refund investors within 3 mths

Capital markets regulator Sebi today ordered real estate developer Adel Landmarks (formerly Era Landmarks Ltd) and its directors to refund the money collected from investors within three months.
Also, the regulator has restrained the company and its directors from accessing the securities market for four years.
According to Sebi, the firm had invited applications from customers for pre-booking of various housing schemes in Gurgaon, Palwal and Faridabad.
It had collected nearly Rs 252 crore from 1,621 investors through such schemes.
In the application, the company had said that in case it fails to obtain the licence for the sale or allotment of the land within a given period or is unable to make allotments of plot due to any reason then it would refund the money along with promised returns.

However, the company failed to allot plots to any customer.

Adel Landmarks claims to have refunded Rs 50.52 crore to the customers.
The Securities and Exchange Board of India (Sebi) found the company was engaged in Collective Investment Scheme (CIS) without obtaining necessary approvals from the regulator.
In an order passed today, Sebi said, "Adel Landmarks and its directors -- Rakesh Kumar Gupta, Sumit Bharana and Arvind Kumar Birla -- shall 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."
Thereafter, they will have to submit a winding up and repayment report to Sebi within 15 days.

Besides, the regulator has prohibited the entities from accessing the securities market for four years and said the ban will continue till all money is refunded to its investors with returns which are due to them.
In case the company and its directors fail to comply with Sebi's order, the regulator would make a reference to the state government/local police to register a civil/criminal case against them.
Additionally, Sebi would make a reference to the Ministry of Corporate Affairs to initiate the process of winding up of the company and would also initiate attachment and recovery proceedings.
The market regulator said that this order shall come into force with immediate effect.