The Securities and Exchange Board of India (SEBI) has asked Alchemist Infra Realty Limited, part of the multi-crore Alchemist Group helmed by Chandigarh-based tycoon KD Singh, to wind up all its 'collective investment schemes' and refund about Rs 1,000 crore to investors, chiefly from Madhya Pradesh, within three months.
The company and its directors are barred from the securities market till the refund is made.
KD Singh, at present a Rajya Sabha MP from Jharkhand and the northern region head of Trinamool Congress, leads the group that has a hospital in Panchkula's Sector 20 and is known for its poultry chain 'Republic of Chicken'. Interests include steel, food and beverages, IT, healthcare, media, aviation, realty, hospitality, education and tea gardening.
There was an anonymous complaint regarding violation of rules to SEBI that led to the June 21 order, which says that while the infra company had told SEBI that it was not part of the Alchemist Group, its investment application forms claimed it is part of the moneyed conglomerate.
The company was taking money on interest from people but the form did not mention where the land was situated and what was the share of the investor. That made it a 'collective investment scheme' for which the firm did not have the requisite SEBI nod.
KD Singh could not be reached for comment as he was not in the country.