With an aim to recover investors' money to the tune of ₹56 crore, capital markets regulator Securities and Exchange Board of India (SEBI) has attached as many as 14 properties related to Greentouch Projects and its four directors in an illegal fundraising case. The properties being attached include land parcels, plots, office spaces and a flat located in West Bengal and Uttar Pradesh, according to a recovery notice issued on April 25.
The recovery proceedings have been initiated against Greentouch Projects and its four directors — Shyam Sundar Dey, Snehasish Sarkar, Sujoy Sinha and Sumon Sarkar — for failure to repay ₹56 crore collected by the company through non-convertible redeemable debentures to 20,549 individuals without complying with public issue norms specified under the Companies Act and SEBI's ILDS (Issue and Listing of Debt Securities) rules.
However, the company had claimed to have already repaid an amount of over ₹12.24 crore to its investors. Since the shares were issued by the firm to more than 50 individuals, it qualified as a public issue that requires compulsory listing on a recognised stock exchange, among others.
As per the notice, the regulator learnt that the company and its directors are in possession of 14 properties and felt that they may dispose the assets with a view to obstructing or delay the recovery proceedings, which needs to be prevented immediately by attaching these assets.
Consequently, the regulator has attached these properties and prohibited the entities from disposing of, transferring or alienating these assets. The regulator has prohibited entities concerned "from taking any benefit under such disposal, transfer, alienation or charge in respect of the properties... which stands attached in execution of recovery certificate".
Further, they have been directed to furnish complete details of all the moveable and immoveable properties held by them and charges if any, in a prescribed format, along with original title deeds pertaining to the four properties within two weeks.
As part of the recovery proceedings, SEBI, in October 2019, had attached the bank accounts of these entities. However, they failed to pay dues and did not even respond to the regulator's demand notice. The regulator noted that funds available in the bank accounts and the securities available in the demat accounts of the defaulters were not sufficient to recover dues.
In December 2015, SEBI had ordered Greentouch Projects and its four directors to refund the investors' money it had illegally raised by issuing securities, along with interest. These entities were also barred from the securities market.
