Pancard Clubs, is in the business of marketing holiday plans, has been directed by SEBI not to collect any fresh money under its existing schemes (holiday plans).
SEBI has also directed its directors Sudhir Shankar Moravekar, Shobha Ratnakar Barde, Usha Arun Tari, Manish Kalidas Gandhi, Chandrasen Ganpatrao Bhise and Ramakrishnan not to launch any new schemes and submit the full inventory of assets obtained through the money raised by Pancard Clubs. The regulator has also instructed Pancard Clubs not to divert any funds raised to date and furnish details sought by the regulator within 15 days. The company, earlier had raised ₹3,096 crore from the public. In an interim order on Thursday, SEBI found Pancard Clubs and its directors prima facie guilty of running a collective investment scheme.
The company, in its submissions, had said it is in the business of marketing time share products — room nights — of its hotels and other hotels outside its group at a fixed tariff during the contracted tenure of the holiday options.
At the end of the tenure, applicants had the option of surrendering their unutilised room night entitlements and obtain estimated market value for the repurchased room nights or provide them any products of the group or gift it to their family or friends.
The directions come into effect immediately.
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