SEBI finds Citrus Check Inns operated unregistered investment scheme

This is a final order by SEBI regarding Citrus Check Inns Limited and four of its directors, concerning allegations that the company operated an unregistered collective investment scheme (CIS) by offering holiday plans with promised returns on investment.

Who it concerns: Citrus Check Inns Limited, Omprakash Basantlal Goenka, Prakash Ganpat Utekar, Venkatraman Natrajan, and Narayan Shivram Kotnis.

What SEBI found or ordered

• SEBI found that Citrus was prima facie engaged in mobilizing funds as a Collective Investment Scheme (CIS) without obtaining the required certificate of registration.
• The investigation covered the period from FY 2011-12 to 2015-16.
• SEBI identified 7 specific holiday plans (Gem, Jewel, Crystal, Crown, Pearl, Glory, and Sapphire) that offered redemption options promising returns on invested amounts.
• The order notes that returns on these plans ranged from 16.7% over 3 years to 191.2% over 9 years.
• A Show Cause Notice was issued to the noticees on March 28, 2025, following a Supreme Court order allowing SEBI to proceed with enforcement actions.

Also in the document

• The case has a long procedural history involving the Securities Appellate Tribunal (SAT) and the Supreme Court of India, which ultimately directed SEBI to complete its investigation and determine if the business constituted a CIS.
• The Supreme Court appointed a Sale cum Monitoring Committee (SMC) to oversee the sale of Citrus's properties, with SEBI represented on the committee.
• The document describes the scheme structure as a points-based system where investors could choose to redeem points for cash (promised returns) instead of using them for holiday facilities.