Markets regulator Sebi today imposed a penalty of Rs 1 crore on IHI Developers India and its four directors for illegally garnering money from the public by floating various plans for sale and purchase of land.
The directors are Harjit Singh, Ranjit Kaur, Kulbir Singh and Sanjeev Kumar.
In an order, the 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.
The firm and its directors, as per the order, violated 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 and that it did not have any land in its name. It was mentioned in the complaint 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 in August 2015 against the firm and its directors, directing them to abstain from collecting any money from the investors or carrying 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 complied with its directions, the Securities and Exchange Board of India (Sebi) said.
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