Micro Leasing and Funding Ltd. have mobilized Rs. 58 crores from more than 50000 investors through the issuance of redeemable preference shares in contravention of public issue norms stipulated under the Companies Act, 1956.
In 2016, SEBI directed Micro Leasing and its four directors Upendra Nath Mishra, Kali Prasad Mishra, Durga Prasad Mishra, and Banaja Pattnaik to jointly and severally refund the money of its depositors. Since the company has failed to pay the amount to the investors raised through an unregistered collective investment scheme (CIS), SEBI has now initiated recovery proceedings.
As per the latest update, the capital markets regulator, SEBI ordered the attachment of bank, Demat accounts including lockers to recover dues worth over Rs. 58 crores. After completing the valuation of companies’ assets and properties, SEBI will begin with the auction process. Individuals who have invested their hard-earned money in Micro Leasing and Finding Ltd. and looking for information regarding a refund can register a complaint by visiting SEBI offices or through the online SEBI portal.
Further information regarding the auction of companies’ movable and immovable properties and the initiation of the refund process will be made available soon to the public.