Basil International Ltd. (BIL) – Current Status & Information regarding Refund Process
Basil International Ltd (BIL) is a Kolkata-based company that was illegally involved in raising funds through the issuance of redeemable preference shares (RPS) to investors without complying with the regulatory norms of the Companies Act, 1956. The company is accused of cheating depositors with over Rs. 1700 crore by promising them handsome returns ranging from 11% to 14%. The firm used the investors’ money to further invest in business assets, fixed deposits, pay huge commissions to agents, and more.
In May 2013, market regulator SEBI had asked the firm and directors not to collect any money from investors as it was found that the company had mopped around Rs. 92 crores till March 2012 from multiple investors by violating public issues norms. After this, in February 2015, the capital markets regulator directed the firm to refund investors’ money along with returns promised to them. However, the company failed to comply with the direction. SEBI had barred the company and its directors from accessing the securities market till further notice.
In May 2019, the Securities and Exchange Board of India (SEBI) fined Basil International Ltd and three others over Rs. 1 crore for failing to refund investors’ money. Apart from Rs. 1 crore fine, an additional 10 lakh fine was levied on the former director, two present directors, and the firm. Also, a total penalty of 14 lakh was levied on the two promoters of the company.
SEBI has appointed Ms. Rachna Anand as adjudicating officer to further inquire about the case. As per the latest information, The Enforcement Directorate (ED) has attached assets worth Rs. 200 crores of the company along with Rs. 1.77 crores from BIL’s bank accounts to repay investors’ money.
The recovery proceeding has been initiated by the Securities and Exchange Board of India (SEBI). The case is at present pending and is under the supervision of a one-man committee (Justice S.P. Talukdar). Also, the sale of the company’s properties is still under process. After the completion of the sale process, further information will be made available.