Sebi orders attachment of three properties of GCA Marketing, 2 others

Capital markets regulator Sebi has ordered attachment of three properties related to GCA Marketing and two others to recover Rs 428 crore in a case related to unauthorised fund raising.
These properties are located in Jhansi (Uttar Pradesh), the Securities and Exchange Board of India (Sebi) said in a notice on Wednesday.

Noting that the defaulters are in possession of as many as three properties, Sebi felt that they may dispose or alienate the assets with a view to obstruct or delay the recovery proceedings, which needs to be prevented immediately by attaching these assets.


Accordingly, the regulator has attached these properties and prohibited the entities from disposing, transferring or alienating these assets.

Sebi prohibited the entities concerned "from taking any benefit under such disposal, transfer, alienation or charge in respect of the properties...which stands attached in execution of recovery certificate."

Further, they have been directed to furnish complete details of all the movable and immovable properties held by them, and charges if any, in a prescribed format, along with original title deeds pertaining to the properties within two weeks.

The recovery proceedings have been initiated against the company and two others-- Amardeep Singh Cheema and Gurdeep Singh-- for their failure to pay Rs 428 crore, along with interest, to investors.

As part of the proceedings, Sebi in September 2018, attached the bank accounts as well as share and mutual fund holding of the company, Cheema and Singh.

However, they failed to pay the dues and did not even respond to the regulator's demand notice.

In February 2016, Sebi had barred GCA Marketing and its two directors from the securities market for illegally raising Rs 428 crore and directed them to refund the money to investors.

Cheema and Singh were the directors of GCA Marketing, when the company mopped up the amount by running an illegal collective investment scheme.

GCA Marketing used to solicit money from investors through single, monthly, and yearly payment plans and leased out plants with an assured buyback.