Mumbai: Tightening its noose on Kolkata-based I-Core Group for illicit fund-raising activities, Sebi has asked two of its promoter entities to refund nearly Rs 900 crore collected from the investors, while also referring the case to other agencies like RBI, SFIO and ED.
If the refund orders are not complied with, Sebi has also warned the two companies -- Mega Mould India and Promotech Infratech, and their promoters, of prosecution proceedings and a criminal case for fraud and cheating, followed by a winding-up process to recover the funds.
Sebi has already passed an order against I-Core EServices, whose promoters have floated these two companies as well and all three of them have been found to have indulged in illicit fund-raising activities by duping the gullible investors.
A probe by Securities and Exchange Board of India (Sebi) found that Mega Mould raised Rs 888 crore through issuance of Non-Convertible Debentures (NCDs), while Promotech Infratech issued NCDs worth Rs 11.44 crore, without complying with the regulatory provisions applicable for a public issue.
Sebi noted that as the issue by these companies were made to 50 or more persons, the company was under a legal obligation to get listed on a stock exchange.
Among others, it was also mandatory for the firms to bring out a prospectus with respect to the public issue.
As per two separate orders dated March 5, Mega Mould and Promotech Infratech and their directors have been asked "to jointly and severally" refund the money collected by these companies through the issuance of NCDs.
In case of delay in making the repayments, they have been directed to return the money collected from its investors with an interest of 15 percent per annum.
The companies have been asked to issue public notices detailing modalities for refund, including details of the investors within 15 days of the order.
The directors have also been restrained from associating themselves with any listed public company and any public company which intends to raise money from the public for four years.
Mega Mould, Promotech Infratech and their director have been prohibited from the securities market for four years.
It has prohibited ICore E-Services and Mega Mould Debenture Trust from continuing to act as debenture trustees in respect of the issue of NCDs of Mega Mould and also from taking up any new assignment for four years.
If these firms and their directors fail to comply with these directions, they would be barred from securities market and Sebi would make a reference to the State Government/Local Police to register a civil or criminal case against them "for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds".
