As regulator Securities and Exchange Board of India (SEBI) continues its clampdown on ponzi schemes, it has found Odisha to be a major hotbed for such illegal fund-raising activities with investors being duped in name of jatropha bushes and gold investments.
A large number of companies, either based out of this eastern state or having a significant presence there, are being probed for running illicit ‘collective investment schemes’, while penal action has already been initiated by SEBI against over 20 other entities from the region.
The prominent names that have faced SEBI action and might be slapped with further penalties or other enforcement measures include Sunshine and Green Ray groups.
While an order was passed in Sunshine group case earlier this year, the regulator is further probing the matter.
Among others, such companies are suspected to have collectively garnered thousands of crores worth rupees from investors with promises of huge returns, including doubling of money in a few years, from investments in jatropha plants, real estate ventures, hospitality business, gold and silver coins and a host of agriculture-related activities.
According to senior officials, Odisha has emerged as a major hotbed for such illicit fund-raising activities on the lines of its neighbouring state West Bengal.
Besides, a number of entities operating from West Bengal, including Saradha group, have also significant presence in Odisha. SEBI is the only regulatory agency to have passed directions so far in many such cases including Saradha, although investigations are underway by other agencies too.
SEBI has ordered refund of money and debarment from such fund-raising activities in these cases. Besides, it has also written to the state governments and others for further criminal proceedings against operators of such schemes, while further such actions are expected in some other cases.
In the past, the illegal fund-raising activities in Odisha were mainly related to agriculture-related businesses, but cases like jatropha bushes, gold and silver coins and real estate schemes have also come to the fore in the recent past.
In one of the schemes linked to jatropha plants, funds were collected from about 40,000 gullible investors with promise of tripling of money in seven years.