The Securities and Exchange Board of India (SEBI) on Tuesday issued a tender notice for the auction of 46 properties from Royal Twinkle Star Club Pvt Ltd and Citrus Check Inn Pvt Ltd, which are accused of defrauding investors from Rs 7,500 crore via a ponzi scheme.
The move is part of SEBI’s efforts to recoup funds raised by companies under the guise of fake timeshare vacation plans. Around 18 lakh investors are believed to have been defrauded by Royal Twinkle Star and Citrus Check Inn under the guise of holiday packages.
This auction is part of a phased auction of properties, controlled by the Supreme Court, to recover money from investors.
SEBI has released a list of 46 properties that are for sale/auction in this phase. The properties offered for sale/auction are office and residential properties in Mumbai, Goa, Daman, Pune, Gujarat, Aurangabad, Navi Mumbai and Alibaug. Interested parties must submit their offers on April 6, between 10 a.m. and 1 p.m.
In 2015 SEBI banned the Royal Twinkle Star Club Pvt Ltd and its directors. In 2016, the directors were asked to return investors’ money by the Securities Appellate Tribunal.
In December 2018, SEBI fined Citrus Check Inns and its administrators Rs 50 lakh for failing to comply with its order, in which it prohibited them from raising funds from the public. SEBI had received several investor complaints against Citrus alleging that Royal Twinkle administrators were now running their collective investment scheme (CIS) through Citrus.