HBN Dairies Allied Limited is a Delhi-based company incorporated in December 1998. In
a crackdown, it was found that HBN Dairies Allied was involved in the purchase of cattle
to earn huge returns from the sale of ghee. During an investigation, the Securities and
Exchange Board of India (SEBI) found that HBN Dairies raised money from investors
through a dairy scheme without complying with the provisions of the Companies Act, of 1956.
Capital markets regulator SEBI ordered this Delhi-based firm to refund investors’ money
along with promised returns.
The company and its directors have also been barred from the securities markets for four
years and have been prohibited from launching any other Collective Investment Schemes
(CIS). The company proposed to SEBI to repay over Rs. 1000 crore to investors in a phased
manner. However, there are still many individuals who have not received any repayments
against their deposits.
In July 2018, the Securities and Exchange Board of India ordered to the auction of HBN Dairies’
six properties at Rs. 154 crores through e-auction. More information regarding the
initiation of the refund process will be soon made available to the public.