Regulator Sebi today ordered Susk India and its current as well as former directors to wind up the existing illegal collective investment schemes (CIS) and refund the money raised from investors within three months.
Sebi has also barred the firm and these directors from the capital market "till the directions for refund/repayment to investors are complied with... and for a further period of four years from the date of completion of the refund".
Also, these directors have been restrained from holding position as director or key managerial personnel of any listed company for four years.
The Securities and Exchange Board of India (Sebi) found that Susk India had collected over Rs 5 crore from nearly 300 investors through its scheme of "selling of plots" with a promise of high return on investment during 2010 to 2014.
The regulator said that the activities of the firm constitute CIS and they have been carried out without seeking a registration from Sebi, thereby contravening the CIS Regulations.
Sebi said Susk and its promoters or directors -- Narendra Singh Lodhi, Dinesh Saini, Sunil Tiwari, Jitendra Singh Bhati, Man Singh Lodhi, Amit Singh Rathore, Kailash Singh Lodhi, Bhagwati Bai Lodhi and Jeevan Kharadiya "are jointly and severally liable to wind up existing CIS and refund the money collected by it under the schemes with returns...within three months".
Kailash Singh Lodhi, Bhagwati Bai Lodhi and Jeevan Kharadiya were the company's former directors.
After completion of the refund, the directors would have to submit a winding up and repayment report to Sebi within seven days.
In case, they fail to comply with Sebi's directive, the regulator would initiate recovery proceedings against them.
Besides, the regulator has barred them from disposing of or selling or creating any encumbrance on any of the assets of the company except for the purpose of making refunds to its investors.
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