Sebi fines Rose Val­ley Real Estate, di­rec­tors ₹26 crore

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - Press Trust of In­dia let­ter­[email protected]­dus­tan­

NEWDELHI: In ama­jor crack­down, reg­u­la­tor Sebi slapped Rs 26 crore penalty on Rose Val­ley Real Estate Con­struc­tion and its di­rec­tors for mo­bil­is­ing funds from in­vestors through il­le­gal money pool­ing schemes.

The com­pany raised funds from the pub­lic in cer­tain ar­eas of West Ben­gal in the name of sell­ing plots un­der its ‘Ashir­bad’ scheme.

Ear­lier also, the reg­u­la­tor had cracked down on other Rose Val­ley Group firms for col­lect­ing thou­sands of crore of ru­pees through il­licit money pool­ing schemes. Sebi and sev­eral other agen­cies, in­clud­ing EDhavealso passed at­tach­ment or­ders of the group’s as­sets in var­i­ous cases.

In the lat­est or­der, Sebi said Rose Val­ley Real Estate had raised Rs1,358 crore as onMarch 2010 un­der the A shir bad scheme. There­after, the funds col­lected un­der the scheme had in­creased to Rs 2,016 crore as on March 2011, re­duced to Rs 1,538 crore as on March 2012 and fur­ther dropped to over Rs 742 crore till March 2013.

“The com­pany has launched the scheme -- Ashir­bad -- which is a CIS and has been mo­bil­is­ing funds through the scheme since 2003, but has not ob­tained a cer­tifi­cate of reg­is­tra­tion from Sebi for the same. I am, there­fore, of the opin­ion that the no­ticees have con­tra­vened the pro­vi­sions of... the Sebi Act,” Sebi Ad­ju­di­cat­ing Of­fi­cer Soma Ma­jumder said.

Not­ing that mo­bil­is­ing funds through an un­reg­is­tered CIS is cer­tainly a se­ri­ous vi­o­la­tion af­fect­ing the in­ter­est of gullible in­vestors at large, Sebi said it war­rants max­i­mum pos­si­ble penalty.

Ac­cord­ingly, the reg­u­la­tor has im­posed a penalty of Rs 26 crore on Rose Val­ley Real Es­tates and its di­rec­tors.

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