Capital markets regulator Sebi today ordered Blessing Agro Farm India to refund investors' money, which it had collected through unauthorised money pooling scheme, within three months.
Besides, the firm and directors have been restrained from the securities markets for four years.
According to Securities and Exchange Board of India (Sebi), the company and its directors were engaged in an illegal fund mobilising activity by floating unregistered collective investment scheme (CIS).
They were allegedly running CIS in the name of sale and purchase of plot of lands.
The firm had collected around Rs 84.30 crore from 1,30,189 investors and claims to have paid back Rs 10.41 crore to 12,970 investors and that the outstanding amount is Rs 73.89 crore.
In an order passed today, Sebi said "Blessing Agro Farm India and its directors -- Innsaipillai Lurdpillai Joseph Jeyaraaj, Prakasam Sagaya Packia Santhi, Irudayaraj Manickam Pillai Jeyabalan and Santhanapeter -- shall wind up the existing CIS and refund the money... With returns which are due to its investors as per the terms of offer within a period of three months."
Thereafter, they have been asked to submit a winding up report to Sebi, including the trail of funds claimed to be refunded, bank account statements indicating refund to the investors and receipt from the investors acknowledging such refunds within 15 days.
Besides, they have been abstained from collecting any money from the investors or launch any CIS.
In case they fail to comply with the order, Sebi said the company and its directors will continue to be barred from securities market, even after the completion of four years of restrictions imposed on them till all the CIS are wound up and all the money mobilised through such schemes are refunded to its investors with returns which are due to them.
Further, it would make a reference to state government/ local police and register a civil/criminal case against SPCL and would make a reference to the Ministry of Corporate Affairs to initiate the process of winding up of the firm.
The regulator would also initiate attachment and recovery proceedings against the company.
