Shah Grp Builders case: Sebi initiates refund process; asks investors to submit bank details

Markets regulator Sebi on Thursday initiated the refund process for investors of Shah Group Builders and asked them to submit bank details as well as other documents by September 18.

The case relates to raising money through the issuance of shares to more than 1,500 people between July-November 2008 without complying with the regulatory provisions applicable for a public issue.

“Since the defaulters (the company and its directors) have already refunded an amount of Rs 2.97 crore, it has been decided to initiate the process of refund of the remaining amount to the eligible shareholders,” Sebi said in a notice.

Further, more than 600 eligible shareholders have been asked to submit bank account details and other specified documents by email to the company with a copy marked to Sebi by September 18 for receipt of refund in the bank accounts, it added.

Securities and Exchange Board of India (Sebi), in October 2016, ordered attachment of assets of Shah Group Builders and its directors to recover dues totalling Rs 3.62 crore after they failed to refund the investors money as directed by it.

During the pendency of the proceedings, the defaulters refunded an amount of Rs 2.97 crore. In addition, Sebi recovered over Rs 6 crore through the recovery proceedings initiated by it in 2016.

In July 2015, Sebi had directed the firm and its promoters or directors to “refund/repay the money to the tune of Rs 6.16 crore collected pursuant to the allotment of shares by Shah Group Builders during July-November 2008 to allottees along with interest at the rate of 15 per cent per annum from the date of receipt of money from them till the date of such refund within one year”.

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