Sebi orders Life Care Infra to deposit Rs 3.45 cr in 4 months

Capital markets regulator Sebi has ordered Life Care Infratech and its six directors to deposit Rs 3.45 crore in four months for refunding the investors' money raised through illegal money pooling scheme.
The regulator has directed the entities to deposit Rs 2 crore within two months and the remaining Rs 1.45 crore in the subsequent months.
In September last year, the Securities and Exchange Board of India (Sebi) had ordered the company to refund over Rs 4.89 crore raised from more than 2,600 investors through issuance of redeemable preference shares without complying with the public issue norms.
Although the firm claimed to have refunded Rs 2.61 crore to investors, Sebi found that the actual amount refunded was Rs 1.44 crore. An amount of over Rs 3.45 crore is still to be refunded.

In an order, Sebi's recovery officer Mohammad Atif Alvi directed the entities to deposit Rs 2 crore within two months. Thereafter, the defaulters will have to deposit Rs 1 crore within one month after the expiry of first two months.
The remaining amount of Rs 45 lakh has to be deposited within one month after the expiry of the first three months.
The latest move is part of Sebi's recovery process as the firm failed to refund money to investors within the mandated timeframe. In this regard, various bank and demat accounts were attached.
Apart from directing the entities to deposit money in installments, the regulator has restrained them from disposing or selling assets except for the purpose of repayment to investor's with permission from Sebi, among others.