Sebi initiates criminal prosecution against 14 plantation companies

Our Markets Bureau

Mumbai, Oct 15: The Securities and Exchange Board of India (Sebi) has launched criminal prosecution against 14 plantation companies based in New Delhi and their directors for violating Sebi (Collective Investment Schemes) Regulations, 1999.

The regulator has alleged that these entities were operating unregistered collective investment schemes and had raised several crore of rupees from the investors under various schemes and failed (1) to register the said schemes with the regulator, and (2) to wind up the schemes and refund the amount to the investors, despite several directions from Sebi.

The list includes Aarya Plantations & Farm Developers Ltd, Agriotek India Ltd, Agrogold Plantations & Resorts Ltd, Crystal Biotech Industries Ltd, Vasundhra Marine Products Ltd and Young Farmers Forests Ltd.

Sebi had earlier alerted the investors of Collective Investment Scheme (CIS) way back in 1998 through a public notice that no new CIs scheme can be sponsored by any person till regulations are notified by the regulator. According to information available with Sebi, 137 companies floated various plantation schemes and collected Rs 1,384.67 crore from the investors.

Sebi granted permission to those companies who had filed information with it to carry on their operations.

Of these, two plantation companies ENBEE Plantations Ltd based in Bhopal, MP raised Rs 102.86 crore and Golden Forests(I) Ltd mopped up Rs 1,000 crore.