Securities and Exchange Board of India (SEBI) on Friday imposed a fine of Rs 1 cr on IHI Developers India and its four directors for illegally collecting money from the gullible public by floating various plans for sale and purchase of land without following the due process.
The directors are Harjit Singh, Ranjit Kaur, Kulbir Singh and Sanjeev Kumar.
In an order, the market regulator said that the firm and the directors engaged in fund mobilising activity from the public through investment contracts by floating or sponsoring or launching collective investment schemes (CIS) without having registration with SEBI. As per the order, this fund mobilisation by the firm and its directors constituted a violation of the CIS Regulations.
SEBI had received a complaint dated October 7, 2011 against IHI alleging that the company had been raising funds from investors in the name of sale of land when it did not have any land in its name. The complaint also referred to the fact that the company was also operating in the name of Imbowers Housing and Infrastructure, according to the order.
The regulator also noted that it had passed an order back in August 2015 against the firm and its directors, asking them to stop collection of any money from the investors or carry out any collective investment schemes and to wind up the existing schemes and refund the money collected from the investors.
There is nothing on record to show that the firm and its directors followed the above-said order, the Securities and Exchange Board of India (SEBI) said.