By Accommodation Times News Service
Seeing many complaints done by the small and medium investors , the central and state authorities have begun a crackdown on collective investment schemes (CIS) running by some developers in state of Maharashtra, Tamil Nadu, and many in north-region. A crackdown is basically based on a detailed list of companies prepared in co-ordination with central and state authorities and also in response to the letter written by corporation affairs minister Sachin Pilot several months ago.
The market has gained significance when one of the companies was ordered to close the entire collective scheme by the market regulatory. If sources to be believed the ministry of corporate affairs (MCA) has also asked the Registrar of Companies (RoC) in each of these states to scrutinize the papers of around 80 each entities and red-flag the ones having any dubious records.
According to SEBI, any scheme or arrangement made or offered by any company under which the contributions or payments made by the investors are pooled and utilized with a view to receive profits , income, produce or property and is managed on behalf of the investors. A senior official said, complaints of irregularities against a number of real estate companies registered across states have been lodged with both state and central authorities. Adding further he said, currently 18 such entities are being probed by different regulatory and enforcement agencies for further action. The government is taking serious action against all the CIS procedure.