The Securities Appellate Tribunal has reserved its final verdict in a case related to Alchemist Infra Realty, which has allegedly collected over Rs 1,000 crore from public investors through fraudulent schemes. The infrastructure firm had appealed to SAT against a SEBI order that directed the company to refund the money to the investors within three months.

SAT, which hears matters related to market regulator SEBI, will pronounce the order soon. While hearing the appeal filed by Alchemist Infra Realty, SAT Presiding Officer Jog Singh, on Wednesday, also directed both, SEBI and Alchemist Infra Realty, to make their submissions related to the facts of the case.

Acting on a tip off, the market watchdog, in June this year, had pulled up the Kolkata-based company for allegedly running fraudulent ‘collective investment schemes’ (CIS) in the name of real estate business through which it had garnered Rs 1,087 crore as on March 31, 2011. It also barred the company and its five directors from trading in the securities market till it refunded the money to its investors.

According to the regulator, the company refused to provide details sought during the initial probe period. However, it had later provided some details to SEBI post repeated reminders and show-cause notices. In the meantime, the company sought to settle the case through SEBI’s consent mechanism, which was rejected.

>priyanka.pani@thehindu.co.in

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