Mumbai: Pulling the plug on a illicit realty investment scheme, markets regulator Sebi has restrained Gwalior-based KMJ Land Developers India and its directors from raising funds from investors with immediate effect. The Securities and Exchange Board of India (Sebi) has prima facie found that money pooling activity by the company was in the nature of "collective investment scheme (CIS)" and was being run without requisite approval from the regulator.
The company has mobilised Rs 81.6 crore from several investors through "sale/purchase, development and maintenance of agricultural land". Accordingly, the regulator has asked the company and its directors "not to collect any fresh money from investors under its existing schemes" as well as "not to launch any new schemes or plans or float any new companies to raise fresh money." They also have "to immediately submit the full inventory of the assets including land obtained through money raised". Besides, the company and its directors have been barred from disposing of or alienate any of the properties or assets owned or acquired through the money raised.
Further, they cannot "divert any fund raised from public at large which are kept in bank account(s)and/or in the custody of KMJ Land Developers India," Sebi said. The regulator has also asked the company and its directors to file their reply in the matter within 21 days from the date of receipt of the interim order. These directors are Santoshi Lal Rathore, Kanchan Rajawat Kushwah, Nirmala Rathore, Gopal Prasad Gupta, Dilip Jain, Sunil Singh, Mathura Bai and Sunil Singh Kushwah.These directions shall take effect "immediately and shall be in force till further orders."
