Sebi penalises Garima Real Estate for fraudulently promising high returns

Capital markets regulator Sebi on Monday imposed fines totalling Rs 3 crore on a real estate company and its directors for fraudulently collecting funds from thousands of people in Madhya Pradesh in the name of providing high returns. The company Garima Real Estate & Allied Ltd and its six directors -- Banwari Lal Kushwah, Balkishan Kushwah, Shivam Kushwah, Banabarilal Lodhi, Bijendra Pal Singh and Jitendra Kumar -- have been asked to pay this penalty within 45 days, the regulator said in its order. The Securities and Exchange Board of India (Sebi) said the Finance Ministry's Department of Financial Services had forwarded to it in September 2012 an order dated July 13, 2012, passed by the High Court of Madhya Pradesh (Gwalior bench). The order was passed pursuant to a public interest litigation seeking order of an enquiry against various financial companies including Garima Real Estate & Allied Ltd for allegedly cheating thousands of residents of Madhya Pradesh by asking them to make deposits promising higher returns ranging from 15-20 per cent. The High Court had directed that the copy of its order be forwarded to the various authorities including Sebi to take appropriate action.