SEBI has asked for information related to GCA Marketing properties for a refund
GCA Marketing Private Limited is a chit-fund company that used to solicit money from investors in a form of single, monthly, and yearly plans and leased out plants with an assured buyback. As per the Punjab Agricultural Produce Markets Act, the company was listed in the business of agriculture, farming, and product sales. However, it was later recognized that the company was asking for deposits without seeking permission and obtaining a certificate of registration from the Securities and Exchange Board of India (SEBI). The firm mopped a huge sum of money through an illegal collective investment scheme (CIS).
In December 2014, SEBI directed GCA Marketing and its directors (Amardeep Singh Cheema and Gurdeep Singh) not to collect any more deposits from investors and refund Rs. 428 crores to the investors, along with interest promised to them. SEBI also asked them to furnish all the information such as active schemes, a list of investors, their names, address, contact number, etc.
In February 2016, the Securities and Exchange Board of India (SEBI) barred the company and its two directors from the securities market till further notice as they have failed to comply with refund directives.
According to the available information, the Capital markets regulator SEBI has ordered the attachment of properties related to GCA Marketing and two of its directors in regards to an unauthorized fundraising case to pay Rs. 428 crore, along with interest, to investors.
The matter is still under investigation. Those who have invested their money in the company can expect to get information regarding a refund after the completion of the inquiry. For more information related to the current status of the case or refund process, visit the official website of Justice S.P. Talukdar Committee at https://justicesptalukdarcommittee.com/. Investors/depositors of the MPS group of companies can also apply for refunds online.
Sai Prasad Corporation: SEBI Auctioned firms’ assets in ₹ 4000 crore investment fraud
Sai Prasad Corporation Ltd (SPCL) has allegedly raised funds worth Rs. 615 crores from more than 20 lakh investors through collective investment schemes (CIS) without seeking permission from the capital market regulator. Set up in 2016, SPCL is a Pune-based chit fund company where the depositors were promised high returns (18% annual returns on investments) in a variety of schemes and defrauded them. Hence, the company was stated to be running a Ponzi scheme where liabilities were being met through deposits. The company was later also recognized to be involved in 4000 crore investment fraud.
In the light of the violation of SEBI norms, the regulator barred the company and its directors (Balasaheb K Bhapkar, Vandana B Bhapkar, and Shashank B Bhapkar) from accessing the securities markets for four years. SEBI also restrained them from the selling firm’s assets, except to make refunds to its depositors.
In January 2019, SEBI ordered Sai Prasad Corp to refund Rs. 615.47 crores to its investors along with promised returns within three months. However, the company failed to comply with the refund directions.
According to available data, the special MPID court, where the case is under trial has permitted SEBI to auction 200 properties owned by Sai Prasad Group of Companies. In December 2019, SEBI auctioned the assets of Sai Prasad Corporation in a Rs. 4000 crore Ponzi scheme. Currently, the sale of companies’ properties along with ornaments, jewelry, and other valuable objects is in process.
The matter is still under investigation headed by the one-man committee. No information regarding the refund process has been announced yet. Investors/depositors who have invested in the schemes offered by SPCL can visit https://justicesptalukdarcommittee.com/ for further clarification. Depositors can also apply for their refunds online.