The market regulator Sebi has banned MBLDL and its five directors from the securities market for at least four years and asked them to return the money they have collected illegally from investors. MBLDL is mobilising funds from public without the mandatory registration with the regulator.
As per a Sebi order dated April 17, Mark Builders & Land Developers Ltd (MBLDL) takes money from customers through its numerous schemes of booking and development of plots of land.
"MBLDL is carrying on collective investment scheme (CIS) under the garb of allotment/development /sale of plots of land and therefore was required to be registered as mandated under... CIS Regulations," Sebi said in its order.
The launching or sponsoring of any CIS and mobilisation of funds from the public under it can be done by a person only after obtaining the necessary registration.
"MBLDL has not obtained any certificate of registration from Sebi under the CIS Regulations for its fund mobilising activity from the public, for the 'Schemes' offered by it," the regulator said.
Accordingly, Sebi has directed the firm and its directors to stop the existing CIS and refund the contributions collected from investors under them with due returns within the next three months.
The entities have to submit a winding up and repayment report to the Securities and Exchange Board of India (Sebi) within seven days after that in accordance with the CIS Regulations.
The firm and directors have been restrained from accessing the securities market till the directions for refund to investors are complied with and repayment completion certificate is submitted to Sebi and "thereafter for a further period of four years from the date of completion of the refund".
The directors have also been banned from holding position as director or key managerial personnel of any listed company for four years from the date of the order.
The directors are Gurnek Singh, Sarabjit Singh, Kuljeet Kaur, Gursharanpreet Singh and Narinder Sharma.