The Securities and Exchange Board of India (SEBI) has ordered Saradha Realty India Ltd. to wind-up all its collective investment schemes. The market regulator also directed the company and its Managing Director, Sudipta Sen, to refund the money collected under these schemes and which are due to the investing public with returns.
SEBI has given the company three months time to refund the money. The regulator has also ordered the company to submit to it winding-up and repayment reports within the three-month period.
The order said the regulator would initiate prosecution proceedings against the company and its directors if it failed to comply with the SEBI order. Also, it warned the company of appropriate civil/criminal case against the company, its directors and officials for offences of “fraud, cheating, criminal breach of trust and misappropriation of public funds.’’ Should the need arise, it would also make a reference to the Ministry of Corporate Affairs to initiate winding-up proceedings, SEBI said. Further, it barred the company and its MD from accessing the capital market.