SEBI orders winding-up of Growpital farmland investment scheme
Regulator finds unauthorised CIS raised ₹192.88 crore from 5,208 investors; directs refund with 12 per cent interest
The Securities and Exchange Board of India (SEBI) has ordered the winding-up of Growpital's farmland investment scheme after determining it operated an unauthorized collective investment scheme and raised ₹192.88 crore from 5,208 investors. All 28 noticees, including Rituraj Sharma, Krishnna Joshi, Gayatri Rinwa, and various entities, were found guilty of violating SEBI regulations.
The eight main noticees must refund the money with 12 per cent annual interest, starting from January 29, 2024, and are barred from the securities market for five years or until refunds are complete. The remaining 20 noticees aiding the scheme face a three-year ban. Growpital promised assured, tax-free returns through LLP structures, but investors were not owners of the underlying land.
SEBI discovered that ₹95.60 crore was transferred without business purpose, and ₹8.53 crore was used to acquire Grobanana. The refunded funds will first be distributed among investors in proportion to their outstanding dues, followed by recovery from trade and other receivables and personal assets of the eight main noticees.
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