New Delhi: Clamping down on Alchemist Infra Realty for defying its orders to refund investors, Sebi today directed prosecution proceedings against the company and its directors as well as attachment of their properties to recover the money.
Besides, Sebi has also decided to refer the case to state government and local police to register a civil or criminal case against the company, its promoters, directors and other top officials "for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds".
The matter would also be referred to the Ministry of Corporate Affairs to initiate the process of winding up of the company, Sebi said in an order on Alchemist Infra Realty Ltd.
Sebi also directed the company and its promoters and directors -- Brij Mohan Mahajan, Sunil Kanti Kar and Narayan Madhav Kumar -- to provide a full inventory of all their assets, properties and details of all bank accounts, demat accounts and holdings of shares/securities within 10 days.
Rejecting the company's request for an extension of 24 months for making refunds to investors, Sebi said Alchemist Infra Realty and its promoters/directors have not repaid its investors within the time allowed.
After finding the company to have raised funds from public to the tune of over Rs 1,000 crore in violation of the collective investment scheme regulations, Sebi had passed its refund order against Alchemist on June 21, 2013.
The Sebi order was later upheld with some modification, with regard to the time period for making refunds, by the Securities Appellate Tribunal.
Sebi had first asked the company to make the refund within three months, but SAT later gave it time of 18 months. Besides, the company was asked to submit a report to Sebi every six months giving details regarding the progress made while executing the scheme of repayment.
Sebi said that the company, on February 21, September 12 last year and on March 17, 2015, submitted copies of bank certificates giving details of the amount repaid at about Rs 1,126 crore.
The company also submitted details of repayment, which include name of the investor, cheque number, the name of the bank and date of issuance of cheque.
Later in December 9, 2014, Sebi asked the company to submit by December 16, 2014, the registration number and address of the investors to whom repayments were made.
The company has failed to provide such details till date despite issuance of a reminder on March 20, Sebi said.
"The non-compliance in making payments to investors is committed by the company despite the long period of 18 months available in terms of the order of SAT. It is almost close to two years from the date of the order passed by SAT directing the company to make refunds.
"Still substantial amounts (to the tune of around Rs 800 crore even as per the company) remain outstanding and due to investors.
"It can therefore be concluded that the company was lax and callous when it came to repaying investors within the time frame as directed by the SAT and the conduct of the company in making the request are nothing but a ploy to further delay the repayment.
"The company has not been able to cite any eventuality that would have entitled it to seek further extension of time from Sebi," the regulator said in its order.
