Sebi has ordered Alchemist Infra Realty Ltd to cease all such activities and reimburse the money received from public investors, which might amount to more than Rs 1,000 crore, within three months, as part of a new crackdown on ‘collective investment schemes.’
People from the state who invested in Alchemist Group through various schemes would receive their money back. The money will be returned to the SP Talukdar Committee, which was established by the Calcutta High Court, on July 2. It’s worth noting that the K D Singh group has roughly 1.35 lakh investors, according to the list.
It was determined that the committee will begin distributing the checks in the first week of July. Thousands of individuals have regained their smiles as a result of the news, and they are now eager to get their money back as soon as possible.
The SAT judgment is, however, conditional on the company paying SEBI a sum of one lakh and providing the regulator with the requested information within two weeks, failing which the SEBI order from May 27, 2015, would be reinstated. SEBI, in a judgment dated June 21, 2013, ordered Alchemist to refund approximately Rs. 1,916 crore to investors within three months, as well as shut up the programme, which was designated as a collective investment scheme.
The company have been forbidden from trading
Furthermore, the company and its five directors have been forbidden from trading in securities until all of its schemes have been wound up and the money refunded to investors. If the company and its directors do not comply with Sebi’s requirements, it would face prosecution and a criminal case for “offences of fraud, deceit, criminal breach of trust, and misuse of public funds,” according to the ruling dated June 21.
It has been determined that every day, 250 investors will receive checks for the same amount they invested in the Alchemist Group’s chit-fund schemes. In December of 2015, the committee was formed. A list of investors has been compiled, together with the amount of money they have put up. People who contributed less than Rs 10,000 would receive the cheques in the first wave.
The Shyamal Sen Commission was established by the state government to investigate the Saradha Group’s chit fund scam and provide a procedure for refunding the money. People who had invested in Saradha Group’s chit fund schemes have already begun to receive refunds from the Commission.
The company’s investment application forms also stated that it was a part of the ‘Alchemist Group,’ which was involved in diverse activities such as steel, food and beverages, IT, healthcare, media, aviation, real estate, hospitality, education, and tea estate, among others, with an asset base of over Rs 5,000 crore, according to the Sebi investigation.
The SEBI ruling was contested before the SAT, but the tribunal affirmed it while extending the refund period by 18 months (to July 2013) and allowing Alchemist to seek an extension if necessary. Alchemist stated in its most recent appeal to SAT that it has returned over 1,127 crores and only had to refund over 789 crores based on bank certificates.
The company was taking up to 75% of the money raised from investors to purchase land in the form of ‘development costs.’ During the original investigation, the company declined to submit the information requested by Sebi, claiming that the regulator lacked jurisdiction and that it did not conduct any CIS activity.