New Delhi, January 28, 2014: In its order released in 23 January, Sebi has asked Shree Sai Spaces and its five directors “not to collect any money from investors from its existing project/scheme or to launch any new project/scheme”.
Market regulator Securities and Exchange Board of India (Sebi) has gone ahead to bar Shree Sai Spaces Creations and its directors from raising funds from public for their solar energy generation project. The authority has alleged that it is a Collective Investment Scheme.
Sebi said, “It is evident that the fund mobilising activity of Shree Sai Spaces, promising estimated returns/ profit, has been camouflaged by it by way of a joint venture participation for the development of solar energy generation only to mislead and attract investment from the general public, which in essence satisfies all the conditions of CIS.” The market regulator also revealed that the company was inviting funds from the investors for its ‘joint venture participation project for solar energy generation’ without the desired registration with Sebi.
Shree Sai Spaces was already receiving proposals from many firms. In its order released in 23 January, Sebi has asked Shree Sai Spaces and its five directors “not to collect any money from investors from its existing project/scheme or to launch any new project/scheme”. The directors of the company include Suresh L Srivastav, Laxmi S Shrivastav, Ritesh K Shrivastav, VivekKumar Suresh Srivastav and Rajkumar Laxman Konde.
Sebi had reportedly received a complaint about the alleged illegal mobilisation of funds by Shree Sai Group of Companies on 6 October, 2013. It was found that those willing to invest in the scheme were made to sign an MoU with the company. The funds were collected against the development cost and purchase consideration of the product (solar energy generation panels and a contiguous piece of land to install these panels).
The market regulator has also sought full inventory of the assets owned by the company from the amount collected from the investors under its existing schemes. It has also asked the entities not to dispose of the properties or alienate the assets of the existing scheme, and not to divert any funds raised from public.
