New Delhi: Capital markets regulator Sebi on Friday directed Astha Green Energy Ventures India and its directors to refund Rs 43.77 crore to investors along with an interest of 15 per cent.
According to an order by Securities and Exchange Board of India (Sebi), the company allegedly violated provisions of the Companies Act and Sebi norms relating to raising money from the public through issue of equity shares.
The regulator said the company and its directors "within a period of one year from the date of this order, jointly and severally refund Rs 43,77,47,300 collected pursuant to the allotment of shares... to allottees with interest at the rate of 15 per cent per annum from the date of receipt of money till the date of such refund."
It added: "However, the noticees (the company and its directors) shall ensure that not less than 50 per cent of the refund/repayment directed above is made to the allottees in six months starting from the date of this order."
Sebi also asked Astha Green Energy Ventures and its directors - Keshav Reddy Mereddy, Arjun Reddy Mereddy, Jayanth Reddy Mereddy, Kunduru Raghuveer, K Jayaveer, N Ram Bhupal Reddy and N Jayapal Reddy - to file a status report at the end of each quarter.
Further, the regulator restrained the firm and its directors from "directly or indirectly, accessing the capital market" till the refund, except for the purpose of compliance of the order.
The directors are also restrained from associating themselves with any listed public company and any public company which intends to raise money from the public till the date of refund of money to the investors.
The order shall come into force with immediate effect, Sebi said.