SEBI asks 12 entities, including Marurai Rural Development, to refund over Rs5.3 crore
Clamping down on illegal money raising activities, SEBI barred 12 entities, including 10 individuals, from the markets for at least three years while ordering them to refund more than Rs5.32 crore
Market regulator Securities and Exchange Board of India (SEBI) while barring 12 entities, including Madurai Rural Development Benefit Fund (India) (MRDF) and Madurai Rural Development Transformation India (MRDT), for three years has asked them to refund Rs5.32 crore to investors.
The individuals who have been restrained from accessing the securities market are Mohammed Yusuff Suresh Batcha, Gopalarathinam Ramarathinam, Srinivasan Srikumar, Vasudevan Balaji, Kasiviswanathan Venkataraman, Nagasubramanian Rajalakshmi, Sudhakaran Lataji, Mumtaj Begam Baba, Sithikbasha Mohamed Yusuf and Lilun Nihar Yousuff.
In a 19-page order, SEBI directed these entities to "jointly and severally refund Rs5,32,34,400 collected pursuant to the allotment of shares (i.e. Rs4,99,22,400 collected by MRDT and Rs33,12,000 collected by MRDF)".
The amount has to be refunded along with 15% annual interest rate from the date of receipt of money till the date of such refund in the manner.
Citing its interim order in the matter, SEBI said, "MRDT and MRDF have been found rampantly soliciting deposits from the public and are issuing equities to such persons in order to make them 'members' before 'deposit holders' and soliciting 'fixed deposits/recurring deposits' from such members".
The 10 individuals have also been restrained from associating themselves, with any listed public company and any public company, which intends to raise money from the public, for three years or until the date of refund of money to the allottees whichever is later.
In a separate proceeding, Economic Offences Wing of Tamil Nadu Police (EOW) -- based on the complaints received from various depositors -- has taken steps to freeze the accounts and land holdings of MRDT group of companies and its directors.