SEBI issues ₹6-crore demand notice to 11 entities

Posted on by

SEBI, the capital markets regulator, has issued Demand Notices to 11 entities for payment of Rs 6 crore in a case related to Religare Finvest (RFL) fund transfer.

In the event of non-payment within the stipulated fifteen days, the regulator warned to attach the assets and accounts of the entities.

The 11 entities for which notices were filed include Torus Buildcon, Artifice Properties, Rosestar Marketing, Oscar Investments, Ad Advertising, Zolton Properties, Saubhagya Buildcon, Star Artworks, Vitoba Realtors, Devera Developers and Harpal Singh.

The order notices were issued after these entities failed to pay the fine imposed by SEBI in October 2022.

complex web of transactions

The case involved a complex web of transactions whereby funds of listed parent company Religare Enterprises (REL) were funneled through its RFL subsidiary for the ultimate benefit of the former promoters – RHC Holding, Malvinder Mohan Singh and Shivinder Mohan Singh. The money was also misused to pay off previous RFL loans.

As per the request, the entire fraud scheme led to the transfer of ₹2,474 crore funds from a physical subsidiary of REL and also the misuse of ₹488 crore funds from the RFL.

Last October, SEBI imposed a fine of Rs 21 crore on 52 entities, including these 11, for diversion and misuse of RFL funds. In this case, the regulator imposed a fine between 20 thousand and 85 thousand on these entities.