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Rose Valley Hotels and Entertainments (RVHEL) Ltd, Rose Valley Real Estates Constructions Ltd (RVRECL) and its directors have been directed to immediately stop collecting money and not launch new schemes by SEBI.
SEBI has also ordered them not to sell property and divert funds elsewhere.
SEBI said both the entities had collected Rs 1,006.7 crore from the public till February 2012. RVHEL had launched Rose Valley Holiday Membership Plan (HMP) in 2010.
Though RVHEL claimed that it ran a timeshare business and hence was not under SEBI’s purview, SEBI found that the HMP had all the ingredients of a collective investment scheme.
Annual interest rates offered ranged between 11.2 per cent and 17.65 per cent a year.
As RVHEL did not cooperate with SEBI’s letters of March 1, and March 19, SEBI said that such refusal to submit the information sought was only to conceal the true nature and operation of the fund-mobilising activity.
RVHEL directors have been asked to either reply within 15 days or seek personal appearance considering this order as a show cause notice.
>raghavendrarao.k@thehindu.co.in
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