Continuing its crackdown on illicit realty investment activities, Sebi on Thursday barred Andhra Pradesh-based Agri Gold Farm Estates India from raising fresh capital from the public with immediate effect.
Besides, it directed the company not to launch any new scheme.
The Securities and Exchange Board of India (Sebi) found that Agri Gold Farm Estates India Pvt Ltd (AGFEIPL) was running 'collective investment schemes (CIS)' without obtaining registration from the regulator.
The company was inviting investments from the general public through its various schemes for the purchase and development of land.
"I find that the schemes operated by AGFEIPL...Are in the nature of a CIS," Sebi Whole Time Member S Raman said in an interim order.
Accordingly, Sebi directed AGFEIPL and its directors --Venkata Rama Rao Avva, Avva Venkata Seshu Narayana Rao, Avva Hema Sundara Vara Prasad, Savadam Srinivas, Moganti Bhanuji Rao and Emmadi Sada Siva Vara Prasad Rao--"not to collect any fresh money from investors under its existing schemes".
It has also asked them "not to launch any new schemes or plans or float any new companies to raise fresh money."
Additionally, the company and its directors have been directed not to dispose any assets obtained from funds collected, while the entities also cannot divert money raised from the public.
Further, the entities have been asked to "immediately submit the full inventory of the assets including land obtained through money raised by " as well as furnish withing 15 days details related to the scheme.
These directions shall take effect "immediately and shall be in force until further orders in this regard."
SEBI would have banned Agrigold when Corporate Frauds Watch sent letters to SEBI more than half a decade back against the illegal schemes of Agrigold to avoid the accumulation of over Rs. 6,000 crore (Sixty billion) in its coffers. Now the company enjoys the money without repaying its depositors on the pretext that SEBI banned the liquidation of its assets.