In a major crackdown, regulator Sebi on Thursday slapped Rs 26 crore penalty on Rose Valley Real Estate Construction and its directors for mobilising funds from investors through illegal money pooling schemes. Earlier also, the regulator had cracked down on other Rose Valley Group firms for collecting thousands of crore of rupees through illicit money pooling schemes. In the latest order, Sebi said Rose Valley Real Estate had raised Rs 1,358 crore as on March 2010 under the Ashirbad scheme. Thereafter, the funds collected under the scheme had increased to Rs 2,016 crore as on March 2011, reduced to Rs 1,538 crore as on March 2012 and further dropped to over Rs 742 crore till March 2013. I am, therefore, of the opinion that the noticees have contravened the provisions of... the Sebi Act," Sebi Adjudicating Officer Soma Majumder said.

Source: dna November 30, 2017 19:41 UTC