Maharishi Vedic under Sebi's examination

The probe is for alleged irregularities in collecting money from public investors

Market regulator Sebi is probing Maharishi Vedic Construction Corporation for alleged irregularities in collecting money from public investors.

The probe has been disclosed by the Securities and Exchange Board of India in reply to an RTI application.

In a response to a plea filed by a Right to Information applicant, the market regulator said that "the matter of Maharishi Vedic Construction Corporation Ltd was under examination by Sebi".

However, Sebi did not provide further details sought by the RTI applicant.

It was asked to "furnish the information in its possession on examination of which Sebi has come to conclusion that Maharishi Vedic Construction Corporation Pvt Ltd is involved in the activities of collecting/mobilising monies from general public and mobilisation of such fund/money prima facie appears be in violation of the provisions of Sebi Act, 1992".

Sebi said however that the matter was under examination and "therefore, disclosure of information may impede the aforesaid proceedings".

Aggrieved by Sebi's response, the applicant moved the Sebi's Appellate Authority, which has also declined to "interfere with the decision of the respondent (Sebi)".

In an order dated February 28, the Appellate Authority said it agrees with Sebi's views that "disclosure of information prior to completion of examination would be premature to the process of investigation.

"An applicant may wait till completion of examination as the disclosure of any information at any stage prior to such completion may also harm the reputation of parties involved," it added.

The appellant had filed an RTI application on December 3, 2013, which was forwarded to Sebi by the Ministry of Finance, Department of Economic Affairs.

Sebi received the plea on December 13, 2013 and responded to it on January 8, 2014. The appellant filed appeal against Sebi's response on January 24, 2014.