Mumbai, 23 September 2015
Alleged Chit Fund Company Popular Agro Farms Pvt Ltd and its Directors were issued a notice by SEBI and told them to stop collection of the funds from the market in any manner and refund all money to its investors with immediate effects.
Shri S. Raman, Whole Time Member, SEBI, has passed an order on September 08, 2015 under Sections 11(1), 11(4) and 11B of the Securities and Exchange Board of India Act, 1992 read with Regulation 65 of the SEBI (Collective Investment Schemes) Regulations, 1999 in the matter of Popular Agro Farms Pvt. Ltd. and its Directors.
The Order inter alia directed Popular Agro Farms Pvt. Ltd. and its Directors viz. Mr. Usman Pasha Usman Fayaz and Mr. Niyaz Hyder Ali :
- not to collect any fresh money from investors for its existing schemes and not to launch any new schemes/plans or float any new companies to raise fresh moneys;
- not to dispose of any of the properties or alienate the assets of the existing schemes, not to divert any funds raised from customers/investors, kept in bank account(s) and/or in the custody of the company and to immediately submit the full inventory of the assets owned by Popular Agro,
- to furnish all the information sought by SEBI, including scheme-wise amount mobilized since inception till date, details of scheme-wise list of customers/investors, list of investors who have been refunded and Audited financial statements for last three years, and
- to furnish the item-wise commission paid to agents/investors for the promotion of the scheme(s), since inception till date.
Popular Agro Farms Pvt. Ltd., a company having its registered office at Plot No.1 & 2, Lake Area, Melur Main Road, Madurai 625 107, was found mobilizing funds from the investors under its schemes, prima-facie violating the provisions of the SEBI Act and SEBI (Collective Investment Schemes) Regulations, 1999. This Order shall come into force with immediate effect.