Sebi today slapped a fine of Rs 5 crore on Skylark Land Developers and Infrastructure and its directors for not providing information as sought by the regulator while probing illegal money-pooling complaints against it.
The Gwalior-based firm is alleged to have raised funds from thousands of investors in Madhya Pradesh with a promise of high returns under its scheme for purchase and development of agricultural land.
The Securities and Exchange board of India (Sebi) had in December barred the company and its directors — Jaihind Kumar, Durga Prasad Yadav, Rama Shankar Yadav and Dilip Jain — from mobilising money from investors as well as launching any new investment plans.
Even after repeated reminders, Sebi today said the entities failed to provide the required documents, saying those were seized by the police.
“… noticees (the entities) on the one hand are submitting vaguely that they have submitted most of the information or documents as and when sought by Sebi or the investigating authority and on the other hand, they are also taking the plea that they could not provide the required documents as the same were seized by the police,” Sebi said.
“Such plea cannot be accepted in the given facts and circumstance of the case.”
Sebi had prima facie found that the money-pooling activity by the company was in the nature of “collective investment scheme (CIS)” and was run without requisite approval from the regulator.
The company and its directors had also been barred from disposing of any of the properties or assets owned or acquired through the money raised.
After taking into consideration all the facts, Sebi imposed a fine of Rs 1 crore each on the company and its four directors.
Sebi asked the entities to pay the fine within 45 days of receipt of the order.