SEBI warns public against dealing with Sunshine Global Agro's properties

The market regulator issued this cautionary notice after discovering that some individuals or entities were illegally purchasing, encroaching, or trespassing on the company’s properties.

In a notice issued last week, Sebi stated that no person is allowed to take illegal possession of or trespass on the assets of Sunshine Global Agro and its directors.

The regulator also warned that any unauthorised actions would lead to legal consequences under applicable laws.

Sebi had taken action against Sunshine Global Agro in July 2014, when it prohibited the company and its directors from raising funds from investors or launching any new schemes.

This decision came after Sebi found that the company was mobilising funds through schemes related to the "sale of Jatropha Bush Group and sale of plant/trees."

These activities were classified as an unauthorised Collective Investment Scheme (CIS).

Later, in February 2019, Sebi directed Sunshine Global Agro and its directors not to sell or dispose of any company assets, except for the purpose of refunding investors.

However, since the company failed to comply with the order, Sebi initiated recovery proceedings against it and its directors.

Meanwhile, the market regulator in December 2020 ordered the attachment of bank and demat accounts of Sunshine Global Agro and its directors to recover dues of over Rs 1 crore.

The action was taken after the company and its directors failed to pay a Rs 1 crore penalty imposed by SEBI in March 2019.

The fine was levied after the company was found to have illegally raised over Rs 38 crore from 39,290 investors through unregistered collective investment schemes.

In its attachment notice issued in 2020, SEBI instructed banks and depositories not to allow any debits from the accounts of the company and its directors.

However, credit transactions have been permitted. The total pending dues of Rs 1.09 crore include the original penalty, interest, and recovery costs.