SEBI has extended the ban on Farm Tech Silo LLP, also known as Growpital, and its associated entities and directors from participating in the securities markets until the completion of an ongoing investigation into allegations of unauthorized fund collection through investment schemes, PTI reported on April 28.
A significant update to the previous restrictions, SEBI has lifted the freeze on the bank accounts of Growpital directors Rituraj Sharma, Gayatri Rinwa, and Krishna Sharma. This decision was announced by Amarjeet Singh, a full-time member of SEBI, on Friday, April 26.
Singh, in the latest order issued on April 26, stated, “I, under sections of Collective Investment Schemes (CIS) Regulations, hereby confirm the directions issued vide the interim order, till further orders, subject to the modification that the bank accounts of the individuals namely, Rituraj Sharma, Gayatri Rinwa, and Krishna Sharma shall be unfrozen.”
However, Singh clarified that the ban on the entities will persist to prevent any misuse of available funds. The order highlighted concerns regarding unclear revenue sources, exaggerated claims regarding cultivated land, and deficiencies in fund utilization and financial projections. PTI quoted the order as stating, “Given the lack of clarity around revenues, the apparently exaggerated claims on the land under cultivation and the deficiencies in submission on fund utilization and financial projections, the balance of convenience lies in favor of the continuance of the restraint against the entities till the time the proceedings in the present matter are complete.”
This decision follows an initial interim order issued in January, where SEBI prohibited Farm Tech Silo LLP and its affiliates from raising funds from investors and barred them from the securities market. The entities were also directed to cease all operations related to collective investment schemes during the investigation.
SEBI’s investigation revealed that Growpital offered agricultural investment plans promising tax-free profits ranging from 11 to 14 percent. Investors were made partners in limited liability partnerships, each associated with a “ZF Project.” These partnerships had amassed over ₹184 crore by the end of the previous year.
The decision to maintain the suspension of these entities was based on concerns regarding revenue streams, claims about cultivated land, and fund utilization, suggesting that the ban should continue until the investigation concludes.
