InvestorQ : Why has SEBI penalized Orient Resorts?
Aashna Tripathi made post

Why has SEBI penalized Orient Resorts?

Aditi Sharma answered.
4 months ago

SEBI imposed a penalty of Rs.85 lakh on Orient Resorts and on two persons for now complying with the SEBI directive to wind up operations and refund money to investors. The winding up order was passed in Nov-2013. SEBI had deemed its collective investment scheme as illegal and against the approval of SEBI.

It was a teak plantation scheme which had promised 100X returns in 18 years. However, after 18 years Orient Resorts did not pay out anything leading to the SEBI order. SEBI also noted that Orient resorts had done unauthorized pooling of funds from investors without obtaining registration from SEBI.