The company has raised capital through the issuance of shares or securities to more than 49 individuals in violation of the Companies Act of 1956.
Prayag Group of Companies Refund Status News: Prayag Group of enterprises is one of the older enterprises in the eastern region of the country that participated in the Ponzi scheme. Between 2007-2008 and 2011-2012, Prayag Infotech Hi-Rise (PIHL) issued redeemable preference shares (RPS) and raised at least Rs. 131.37 crore from over 1.57 lakh investors. The company has raised capital through the issuance of shares or securities to more than 49 individuals in violation of the Companies Act of 1956. In September 2016, it was reported that the company was operating a chit fund scheme in which liabilities were covered by deposits.
The capital markets regulator SEBI has instructed company directors to return the money collected from investors with a 15% annual interest rate within three months. In addition, the company and its directors have been prohibited from trading on the securities markets until the refund process is complete. After the refund procedure has been completed, the company and its directors will be prohibited from accessing the capital markets for an additional four years.
Since the company failed to comply with the refund instructions, SEBI has fined the company and its two directors Rs. 1 crore.
In various writ petitions, the high court of Kolkata designated Justice (Retired) Shailendra Prasad Talukdar to a one-man committee for the sale of the companies’ assets and distribution of the sale proceeds.
The committee has now instructed the Securities and Exchange Board of India (SEBI) to auction the immovable properties of the companies in order to liquidate their assets and return the investors’ funds. The sale of properties, including land, structures, office space, and the commercial site, was scheduled to occur via online auction on 30 June 2022.
The SEBI will share information regarding the initiation of the refund process once all documentation related to the auction has been completed. Visit the official website of Justice S.P. Talukdar Committee at https://justicesptalukdarcommittee.com/ for more information on the refund procedure.
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