The Securities and Exchange Board of India (SEBI) restrained real estate developer Omaxe Ltd from accessing securities markets for three months. The regulator found the company and promoter-linked entities guilty of routing group funds to buy Omaxe shares during a 2013 Offer-For-Sale (OFS). The transaction created a fake appearance of compliance with Minimum Public Shareholding (MPS) norms.
SUMMARY OF SEBI DEBARMENT ORDERS
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| Entity / Individual | Debarment Term | Monetary Penalty |
+----------------------------------+------------------+-----------------------+
| Omaxe Ltd | 3 Months | ₹27 Lakh |
| Rohtas Goel (Promoter) | 1 Year | ₹37 Lakh |
| Sunil Goel (Promoter) | 1 Year | ₹37 Lakh |
| Jai Bhagwan Goel (Promoter) | 1 Year | ₹37 Lakh |
| Dream Home Developers | 1 Year | ₹27 Lakh |
| Guild Builders | 1 Year | ₹27 Lakh |
+----------------------------------+------------------+-----------------------+
SEBI Imposes Heavy Fines on Promoters and Allied Firms
The regulator barred promoter Rohtas Goel and his brothers Sunil Goel and Jai Bhagwan Goel from the market for one year. SEBI also handed one-year debarments to promoter-linked firms Dream Home Developers and Guild Builders.
The order prohibits all restrained entities from buying, selling, or dealing in any securities, including mutual funds. Additionally, SEBI fined Rohtas, Sunil, and Jai Bhagwan Goel ₹37 lakh each. It levied a penalty of ₹27 lakh each on Omaxe Ltd, Dream Home Developers, and Guild Builders.
FUND ROUTING NETWORK BREAKDOWN
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| Originating Source: Omaxe Ltd & Group Entities (Totaling ₹46.5 Crore) |
| │ |
| Intermediate Conduit: DVM Realtors, Garv Buildtech & Jeet Builders |
| │ |
| Final Application: Subscribed to OFS Tranches (June 3 & October 29, 2013) |
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Investigation Uncovers ₹46.5 Crore Fund Routing Scheme
SEBI revealed that Omaxe and group entities originated funds totaling ₹46.5 crore. The company routed these funds through DVM Realtors, Garv Buildtech, and Jeet Builders to multiple front entities. These entities used the money to subscribe to Omaxe shares across two OFS tranches on June 3 and October 29, 2013.
The regulator stated that this scheme misrepresented Omaxe’s true shareholding pattern and misled market investors. SEBI gave the entities three months to square off or close open positions in exchange-traded derivative contracts.
