₹2,722 crore mobilized through unregistered CIS by Citrus Check Inns Limited

This order addresses allegations that Citrus Check Inns Limited operated an unregistered Collective Investment Scheme (CIS) and engaged in unfair trade practices, resulting in the mobilization of approximately ₹2,722 crore from investors. It details the procedural history, including Supreme Court interventions, and the adjudication of penalties against the company and its directors.

Citrus Check Inns Limited (Noticee no.1), Omprakash Basantlal Goenka (Noticee no.2), Prakash Ganpat Utekar (Noticee no.3), Venkatraman Natarajan (Noticee no.4), and Narayan Shivram Kotnis (Noticee no.5).

• SEBI found that Citrus mobilized approximately ₹2,722 crore through 7 holiday plans that constituted an unregistered Collective Investment Scheme (CIS).
• SEBI alleged that the company and its directors violated Section 12(1B) of the SEBI Act and Regulation 4(2)(t) of the PFUTP Regulations by engaging in fraudulent or unfair trade practices.
• The Adjudicating Officer decided the matter ex-parte regarding Noticee no.5 (Narayan Shivram Kotnis) because he neither filed a reply to the Show Cause Notice nor appeared for the hearing.
• Noticees no.2, 3, and 4 submitted replies arguing that the proceedings were delayed and redundant due to existing Supreme Court orders for asset attachment and investor refunds.
• The order notes that the Supreme Court had previously directed the constitution of a Sale cum Monitoring Committee (SMC) to oversee the sale of Citrus's properties and the refund process.

Written from the document by AI, and checked against it. The original below is authoritative.

The original document