New Delhi: The Securities Appellate Tribunal (SAT) has upheld markets regulator Sebi's decision to recover over Rs 300 crore from Samruddha Jeevan Foods India and its directors in a case related to illegal fundraising. The appeal has been filed by the company and its three directors -- Mahesh Kisan Motewar, Vaishali Mahesh Motewar and Rajendra Pandurang Bhandare -- questioning the veracity of a Sebi order passed in November, 2018, through which a notice of demand to pay over Rs 300 crore was issued. In addition, the entities also appealed for setting aside the final order passed by Sebi in September 2015, wherein the company and its directors were directed to refund in three months money collected from investors through unauthorised cattle and goat farm schemes.

The appeal has been rejected by the tribunal. "In so far as, the prayer to set aside the final order dated September 2, 2015, passed by the WTM (whole-time member) is concerned, we find that such relief cannot be granted," SAT said in an order on Wednesday. "Since no concerted effort was made by the appellants to repay the amount as per the order passed by the WTM of Sebi dated September 2, 2015, the recovery proceedings have been initiated and the impugned notice of demand dated November 20, 2018 has been issued for recovery of Rs 301.29 crore," it added. The tribunal further said that "we do not find any reason to interfere in the impugned recovery notice as we do not find any valid scheme by which the appellants have made a concerted effort to repay the amount" and consequently dismissed their appeal. The recovery proceedings were initiated against these entities after they failed to pay over Rs 300 crore which was due to investors.

The company had collected the money from the public in order to carry out business of "purchase and rearing of goats/buffaloes and also of sheep farming". Besides, the company was running such collective investment scheme without obtaining regulatory approvals.