Sebi orders attachment of four properties of Life Care Real Developers, 7 others

By: |
November 19, 2020 6:58 PM

The properties being attached include residential and agricultural land located in Uttar Pradesh, the Securities and Exchange Board of India (Sebi) said in a notice.

In December 2015, Sebi had directed Life Care Real Developers to refund, along with interest, money, it had illegally raised from investors. Also, the company and its directors were barred from the capital markets.In December 2015, Sebi had directed Life Care Real Developers to refund, along with interest, money, it had illegally raised from investors. Also, the company and its directors were barred from the capital markets.

Markets watchdog Sebi on Thursday ordered attachment of four properties related to Life Care Real Developers and seven others in a illegal fund raising case as part of efforts to recover more than Rs 4.37 crore.
Between 2010-11 and 2012-13, the company had raised funds by allotting redeemable preference shares to at least 1,696 persons without complying with norms.

The properties being attached include residential and agricultural land located in Uttar Pradesh, the Securities and Exchange Board of India (Sebi) said in a notice.

The regulator learnt that the defaulters are in possession of four properties and felt that they may dispose the assets with a view to obstruct or delay the recovery proceedings, which needs to be prevented immediately by attaching these assets.

Consequently, the regulator has attached these properties and prohibited the entities from disposing, transferring or alienating these assets, as per the notice. The regulator has prohibited entities concerned “from taking any benefit under such disposal, transfer, alienation or charge in respect of the properties… which stands attached in execution of recovery certificate”.

Further, they have been directed to furnish complete details of all the moveable and immoveable properties held by them, and charges if any, in a prescribed format, along with original title deeds pertaining to the four properties within two weeks.

The recovery proceedings have been initiated against the company and seven others — Arshad Hussain, Shiba Pravin, Mohd Sheraj Lari, Rajneesh Pratap Shukla, Yogendra Pratap Shahi, Mohammad Aftab Alam and Mohd Gani — for their failure to pay Rs 4.37 crore, along with interest, to investors.

As part of the proceedings, Sebi, in July 2017, had attached the bank accounts as well as share and mutual fund holdings of the company and these individuals. However, they failed to pay dues and did not even respond to the regulator’s demand notice.

In December 2015, Sebi had directed Life Care Real Developers to refund, along with interest, money, it had illegally raised from investors. Also, the company and its directors were barred from the capital markets.

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