Description
RTI appeal regarding SEBI's regulatory oversight and enforcement actions concerning Growpital and investor fund recovery of Rs 184 crore.
Summary
Appeal No. 6599 of 2025 filed by Keshav Lahoti under the Right to Information Act, 2005 before SEBI’s Appellate Authority. The appellant sought information regarding SEBI’s regulatory actions against Growpital, including details about Rs 184 crore frozen in escrow accounts, enforcement timelines, and accountability of auditors and legal advisors. The CPIO responded that the queries sought clarifications/opinions rather than information as defined under RTI Act, and that SEBI conducts investigations confidentially without confirming or denying their existence.
Key Points
- Original RTI application filed on September 25, 2025 through RTI MIS Portal
- CPIO responded on October 23, 2025 declining to provide requested information
- Appeal filed on October 26, 2025 (Reg. No. SEBIH/A/E/25/00279)
- Central issue: investor funds totaling over Rs 184 crore frozen in Growpital’s escrow accounts
- Growpital allegedly mobilized public funds without proper registration through extensive promotional activities
- Investigation initiated after corpus exceeded Rs 100 crore in June 2023
- Assets frozen in January 2024
- Over 5,200 investors reportedly affected
- Entities involved: Yotta Agro Ventures Private Limited, ZF Project LLPs, Farm Silo Tech LLP
Regulatory Changes
No regulatory changes introduced by this order. This is an RTI appeal concerning existing regulatory oversight and enforcement actions.
Compliance Requirements
No new compliance requirements. The appeal raises questions about:
- Registration requirements for entities mobilizing public funds
- Collective Investment Scheme (CIS) regulations compliance
- LLP partnership limit violations
- Auditor certification standards
- Legal advisor accountability for opinions on investment structures
Important Dates
- September 25, 2025: RTI application filed by Keshav Lahoti
- October 23, 2025: CPIO response issued
- October 26, 2025: Appeal filed
- June 2023: SEBI investigation initiated (when corpus exceeded Rs 100 crore)
- January 2024: Growpital assets frozen by SEBI
Impact Assessment
Investor Impact: Over 5,200 investors affected with Rs 184 crore frozen in escrow accounts awaiting recovery mechanism and timeline from SEBI.
Regulatory Process: The appeal highlights concerns about:
- Timing of regulatory intervention despite visible public operations
- Continued operations after asset freeze in January 2024
- Accountability of intermediaries (auditors and legal advisors)
- Fund recovery mechanisms and investor protection measures
Transparency: CPIO’s response emphasizes SEBI’s policy of conducting investigations confidentially without confirming or denying their existence. Final enforcement orders are published on SEBI’s website when violations are established.
Market Oversight: Questions raised about regulatory response timelines when entities conduct extensive promotional activities for fund mobilization without proper registration under CIS regulations.
Impact Justification
RTI appeal concerning regulatory oversight of Growpital involving Rs 184 crore in frozen investor funds and questions about SEBI's enforcement timeline and investigation process