Sebi asks DCA to crack down on Green Gold Agro

New Delhi, Dec 9: Cracking down on erring plantation firms, the Securities and Exchange Board of India (Sebi) has asked the Department of Company Affairs (DCA) to start winding up process against Green Gold Agro Development, while initiating similar steps against Anubhav Plantations.

The move is aimed at recovering funds collected by these companies from investors by offering high interest rates, official sources said. “Necessary information has been sent to DCA for initiation of winding up proceedings against Green Gold Agro. The entity has also been referred for prosecution under the Sebi act,” sources said.

Sebi has also barred the entity, its promoters and directors, from operating in the capital market for five years, while referring the case to the respective state governments for initiating civil or criminal proceedings.

Green Gold Agro had earlier applied to the Sebi for registration under provisions of Sebi (collective investment schemes) Regulations, 1999. The proposal was, however, rejected during February 2001 and Sebi asked the company to wind up its schemes and repay its investors.

Sebi then passed an order under Section 11B of Sebi Act, directing Green Gold to return the funds to investors with returns, as promised in the public offer, within one month. Since Green Gold failed to comply with the orders, sources said Sebi asked DCA to initiate winding up proceedings.

After Sebi’s initiatives, the Chennai High Court also ordered winding up of Anubhav Plantations for repaying investors funds.The administrator appointed by the Chennai High Court is in the process of identifying the properties of Anubhav Plantations and selling them.

— PTI