Nikhara Bharath Construction and its directors were found collecting money illegally from investors under its grow tree and tree booking schemes, SEBI said
Market regulator Securities and Exchange Board of India (SEBI) has barred Nikhara Bharath Construction Co and its directors from raising fresh money from investors from its collective investment scheme (CIS).
SEBI found that Nikhara was engaged in fund mobilising activity from the public, by floating 'collective investment schemes' -CIS without obtaining certificate of registration from the regulator.
The regulator received a complaint in April last year alleging illegal mobilisation of funds from public by the company under its 'Grow Tree Scheme'/ 'Tree Booking Scheme'.
In an order, SEBI has directed "Nikhara and its directors -- Kodandarama Pilliah Bharathi Balakrishna Murthy and Sreedevi Balakrishnamurthy--not to collect any money from investors from its existing 'scheme'or to launch any new 'scheme'."
It also asked the company "to immediately submit the full inventory of the assets owned by Nikhara out of the amounts collected from the "customers"/ investors under its existing scheme."
SEBI has barred the company from disposing of any of the properties of the existing scheme. It also prohibited Nikhara from diverting any funds raised from public, kept in bank account(s) and/or in the custody of the company.
The regulator has asked the companies to furnish all the information sought by the regulator within 15 days, including, details of amount mobilised and refunded till date, scheme wise list of investors among others. These directions shall take effect immediately and shall be in force until further orders.
"The fund mobilising activity of Nikhara, which is in the nature of a CIS...Has been camouflaged by Nikhara by terming it as a 'real estate development and sales business' only to mislead and attract investment from general public," SEBI said.
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