SEBI told Agri Gold Farm Estates India Pvt. Ltd. and its Directors to pay back money to the investors

Special Correspondent

Mumbai, 23 September 2015

So called Chit Fund Company Agri Gold Farm Estates India Private Limited and its Directors are in the deep trouble as market regulator SEBI issued an order to stop collection of the funds from the market in any manner and refund all money to its investors with immediate effects.

In a press note issued by market regulator Shri Prashant Saran, Whole Time Member, SEBI, has passed an order on September 14, 2015 in the matter of Agri Gold Farm Estates India Private Limited and its Directors under section 19 of Securities and Exchange Board of India Act, 1992 and Sections 11(1), 11B and 11(4) thereof and Regulation 65 of the SEBI (Collective Investment Schemes) Regulations, 1999.

The Order inter alia directed Agri Gold Farm Estates India Private Limited and its Directors, viz., Mr. Venkata Rama Rao Avva, Mr. Avva Venkata Seshu Narayana Rao, Mr. Avva Hema Sundara Vara Prasad, Mr. Savadam Srinivas, Mr. Moganti Bhanuji Rao and Mr. Emmadi Sada Siva Vara Prasad Rao,

• to abstain from collecting any money from the investors or launch or carry out any Collective Investment Schemes including the schemes which have been identified as a Collective Investment Schemes in this Order;
• to wind up the existing Collective Investment Schemes and refund the money collected by the said company under the schemes with returns which are due to its investors as per the terms of offer within a period of three months from the date of this Order and thereafter, within a period of fifteen days, submit a winding up and repayment report to SEBI, including the trail of funds claimed to be refunded, bank accounts statements indicating refund to the investors and receipts from the investors acknowledging such refunds.
• not to alienate or dispose off or sell any of the assets of the Company except for the purpose of making refunds to its investors as directed above;
• to provide a full inventory of the assets and properties owned by the company and details of all their bank accounts, demat accounts and holdings of shares/securities, if held in physical form;
• not to access the securities market and are prohibited from buying, selling or otherwise dealing in securities market for a period of four (4) years.

Agri Gold Farm Estates India Private Limited, having its registered office located at: Agri Gold Towers, H.No. 6-3-680/A/B, Thakur Mansion Lane, Near Somajiguda Circle, Hyderabad- 500082, was found engaged in mobilizing funds from the investors under its schemes, prima- facie violating the provisions of the SEBI Act and SEBI (Collective Investment Scheme) Regulations, 1999. This Order shall come into force with immediate effect.