Sebi to auction assets of Royal Twinkle, Citrus Inn in Dec to recover funds

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Markets regulator Sebi will auction assets of Royal Twinkle Star Club Ltd and Citrus Check Inns Ltd next month in order to recover funds worth thousands of crores of rupees raised by the companies in the garb of sham 'timeshare' holiday plans.

The move comes following the directions of the Supreme Court, the Securities and Exchange Board of India (Sebi) said in a notice on Monday.

The properties at Alappuzha in Kerala will be auctioned on December 4 at a total reserve price of a little over Rs 19 crore, it added.

In October, the regulator said it will auction properties of Royal Twinkle and Citrus Check Inns at Lower Parel, Lonavala and Bengaluru on November 26 at a total reserve price of over Rs 117 crore.

In December 2018, Sebi imposed a penalty of Rs 50 lakh on Citrus Check Inns and its directors for non-compliance with its order, wherein it had barred them from raising funds from the public.

Sebi had received several investor complaints against Citrus alleging that directors of Royal Twinkle are now running their CIS through Citrus.

In August 2015, the regulator imposed a four-year ban on Royal Twinkle and its four directors for illegally raising over Rs 2,656 crore in the garb of sham 'timeshare' holiday plans.

Besides, it directed the company and its officials to refund the money along with promised returns to the investors in three months.