Millennium Post

Sebi invites refund claims from Tower Infotech investors

This is the second major case after Sahara, where Sebi has invited refund claims from affected investors under a court order. Deadline for investors in Sahara's case ended on 30 September.

Adopting a new strategy to collect funds for repayment to investors, Sebi has already initiated a process for an e-auction of land and buildings of Tower Infotech that had garnered money through its schemes from public. The unauthorised money-collection schemes are widely known as 'chit funds' in West Bengal and other Eastern and North-Eastern states, although their operators are not registered as 'chit fund' companies in most cases.

In a public notice published on Friday, Securities and Exchange Board (Sebi) has invited 'applications from the investors/ depositors of Tower Infotech Limited for refund of their investments/ deposits in the company.'

The regulator has asked investors to submit their refund applications along with necessary documentary proof by 25 October, 2014.The investors are required to submit the applications along with copies of documents like details of investment or deposits, bank account details, address proof and PAN number among others.

Sebi has already initiated the process for sale of assets of Tower Infotech, as per an order from Calcutta High Court, under which an e-auction would be conducted for sale of land and buildings of the company.

The bids have been invited by Sebi till October 27, while auction for the sale would take place on October 30. The High Court has directed Sebi to sell certain assets of Tower Infotech and distribute the proceeds among duped depositors and debenture holders.
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