Sebi has cracked the whip on Rajasthan-based real estate major and has asked it to refund Rs 50,000 crore to people who invested in its collective investment scheme.
Facing a Sebi order with charges of running an illicit money pooling scheme worth about Rs 50,000 crore, Pearl Agrotech Corporation (PACL) today said it will approach the Securities Appellate Tribunal (SAT) against the directive of the capital markets regulator.
“Sebi has unfortunately failed to recognize the submissions of the company that it can’t be treated like a CIS. The company would now appeal this order before the Securities Appellate Tribunal,” PACL said in a statement after the Sebi order.
“PACL limited, in its submission to the Sebi bench had submitted that it is not running a CIS. “Further, the company has sufficient asset holdings vis-a-vis the money raised for its real estate business,” the company said. PACL further said it “would also like to remind its customers that it has always kept their interest paramount and would continue to do so”.
“We assure our customers that their investments are safe& their interests would not be jeopardized,” the company added. Sebi in its order earlier this evening asked PACL and its promoters and directors to refund investors’ money within 3months and immediately stop raising money from all their collective investment schemes, after finding them guilty of raising close to Rs 50,000 crore through unauthorised CIS activities.