NEW DELHI: Sebi has ordered release of demat account of Alchemist Infra Realty, the firm allegedly involved in raising over Rs 1,900 crore through unregistered collective investment scheme (CIS).
The release order is passed in compliance with the directions passed by Calcutta High Court in December 2018 wherein it had directed to defreeze the demat account of Alchemist Infra Realty, Sebi said in an order dated January 21.
However, the demat accounts of its two directors — Brij Mohan Mahajan and Narayan Madhav Kumar — shall remain attached, the regulator said.
The markets watchdog in March 2017 had ordered attachment of bank, demat accounts and mutual fund folios of the firm and its directors for recovery of Rs 1,916 crore raised through illegal CIS after they failed to return the money to the investors.
In 2013, Securities and Exchange Board of India (Sebi) had directed Alchemist and its directors to refund Rs 1,916 crore collected from the investors along with interest after the regulator found that the company was running CIS in the name of real estate business without prior approval from the regulator.
Source: Press Trust of India