SEBI Clamps Down on Servehit Housing & Infrastructure's Illegal Fundraising
New Delhi: The Securities and Exchange Board of India (SEBI) has taken decisive action against Servehit Housing & Infrastructure India and its members. Following an investigation into the mobilization of funds through illicit real estate plans, the market regulator has restricted the company from collecting money from the public. SEBI has also directed the infrastructure firm not to dispose of any properties or divert funds raised through the questionable scheme.
SEBI Orders Asset Disclosure and Halts New Schemes
The market watchdog has mandated the housing unit to submit comprehensive data regarding its assets and has prohibited it from introducing any new schemes into the market. This action follows a complaint lodged against Servehit Housing in 2010, which prompted SEBI to initiate an inquiry into the alleged illegal fund transactions.
Protecting Investor Interests
SEBI has emphasized its commitment to safeguarding investor interests and has implemented immediate measures to prevent Servehit Housing from accumulating further funds. The infrastructure firm's plan involved the purchase, development, and maintenance of plots, with promises of substantial returns to investors. They have been given 15 days to respond to the charges.
SEBI's Initial Investigation
According to SEBI’s initial findings, Servehit Housing operated a scheme inviting public tenders for plot bookings, coupled with guaranteed returns. The market regulator has characterized this business model as a deceptive real estate scheme designed to mislead the public and attract investments through unethical practices.
"The Sebi term the business proposal as a real scheme only to mislead and attract investment from public in a wrong way."