Sebi bars Citrus for running a Ponzi Scheme

In A fresh crackdown on illegal fund-raising activities, market regulator Securities and Exchange Board of India (Sebi ) on Wednesday barred Citrus Check Inns directors from raising fresh capital from the public, with immediate effect.

The Sebi found that Citrus has collected over Rs 777 crore from investors through its various holiday plans.

Also, it was running collective investment schemes (CIS) without obtaining registration from the regulator.

The order follows a complaint received by Sebi alleging that Citrus was running a Ponzi Scheme and misselling its schemes to the public.

It was also alleged that Citrus refused to refund the capital invested by the complainant in June 2012, when she approached the company for refund of the money.

Sebi has received several investors' complaints against Citrus alleging that directors of Royal Twinkle Star Club are now running their CIS through Citrus.