Sebi imposes Rs 30 lakh fine on Idol India Infra, promoters

Regulator Sebi today imposed a total penalty of Rs 30 lakh on Idol India Infrastructures Ltd, its promoters and directors for failing to comply with its earlier directions to refund investors' money.
Idol India Infrastructures, as also its promoters and directors, were asked by Sebi through an order in May 2014 to refund the money collected from investors.
The company had raised Rs 4.95 crore from over 10,000 investors by way of issuing non-convertible debentures by way of private placement without Sebi's approval.
However, the company had claimed to have repaid the amount to investors.
"If the noticees (the company, its promoters and directors) had genuinely made the repayment of Rs 5.16 crore to the investors towards the NCDs, as claimed by them, then nothing stopped them from producing the certificate from two independent peer reviewed Chartered Accountants, as directed by Sebi," the regulator said in an order.

However, despite several reminders by Sebi, these entities failed to submit documents regarding this.
"The noticees were under an obligation to comply with the directions issued by Sebi. However, noticees blatantly failed to comply with the directions issued to them by Sebi vide its order dated May 19, 2014," Sebi said.
Accordingly, Sebi has imposed a penalty of Rs 30 lakh on Idol India Infrastructures, Bappaditya Majumder, Pintu Sarkar, Rumpa Sarkar, Kanchan Das, Bapi Majumder, Aindrilla Majumder and Tapti Roy.