Description

SEBI Recovery Officer issues Order No. 001 of 2026 in ongoing recovery proceedings against Four Season Farms Limited for failure to refund Rs. 15.20 crore collected in violation of SEBI Collective Investment Schemes Regulations, 1999.

Summary

SEBI’s Recovery Officer has issued Order No. 001 of 2026 in the matter of Four Season Farms Limited under Recovery Certificate No. 0436 of 2014. The proceedings stem from a February 2002 SEBI direction requiring the company to refund Rs. 15.20 crore collected from investors in violation of SEBI (Collective Investment Schemes) Regulations, 1999, along with assured returns, interest, and costs. The company repeatedly failed to comply, leading to sustained recovery action spanning over a decade.

Key Points

  • SEBI’s original 2002 order directed Four Season Farms Limited to refund Rs. 15.20 crore collected illegally under CIS Regulations, 1999.
  • Recovery Certificate No. 436 of 2014 (dated September 19, 2014) was issued after the defaulter failed to pay; a Notice of Demand was simultaneously served with a 15-day payment deadline.
  • Bank/demat accounts and mutual fund folios of the defaulter were attached via Notices of Attachment dated September 19, 2014.
  • A Prohibitory Order dated November 21, 2014 was issued under Section 28A of the SEBI Act, 1992 read with Rules 16 and 48 of the Second Schedule of the Income-tax Act, 1961, restraining the defaulter from disposing or transferring any movable or immovable properties.
  • Properties covered by the Prohibitory Order include: 17 flats in Vasundhara Building, Goregaon (East), Mumbai; 252.06 acres of agricultural land at Mahad and Mangaon (approx. 500 cashew trees and 40,000 teakwood trees); and a Prawns Hatchery Plant at Village Kothrude, Taluka Mahad, District Raigad.
  • The defaulter challenged recovery proceedings before the Securities Appellate Tribunal (SAT) via Appeal No. 62 of 2015, claiming investor amounts had already been refunded under the Maharashtra Protection of Interests of Depositors (MPID) Act, 1999.
  • Cello Infrastructure Private Limited is the applicant in this order proceeding.

Regulatory Changes

No new regulatory changes are introduced. This order is an enforcement action under the existing framework of Section 28A of the SEBI Act, 1992 and Rule 11 of the Second Schedule to the Income-tax Act, 1961.

Compliance Requirements

  • The defaulter (Four Season Farms Limited) was previously required to furnish complete details of all movable and immovable properties (with charges, if any) within one week of the Prohibitory Order.
  • Copies of title deeds and valuation reports of all properties were required within two weeks.
  • A list of all CIS schemes floated, with brochures and scheme information documents, was required within two weeks.
  • A complete investor list (with address, bank details, investment details, amounts due) in both electronic and physical form was required within one month.

Important Dates

  • February 13, 2002: SEBI original order directing refund of Rs. 15.20 crore.
  • September 19, 2014: Recovery Certificate No. 436 of 2014 issued; Notice of Demand and Notices of Attachment served.
  • November 21, 2014: Prohibitory Order issued restraining disposal of all movable and immovable properties.
  • 2015: Defaulter filed Appeal No. 62 of 2015 before SAT challenging recovery proceedings.
  • 2026: Recovery Officer issues Order No. 001 of 2026 in continuation of these proceedings.

Impact Assessment

This order has no broad market or systemic impact. It is a company-specific enforcement and recovery action against an unlisted entity (Four Season Farms Limited) for historical CIS violations. The matter is relevant primarily to affected investors who were promised refunds of Rs. 15.20 crore under CIS schemes. The prolonged nature of proceedings (originating in 2002, recovery initiated in 2014, still active in 2026) highlights SEBI’s sustained pursuit of investor refunds in legacy CIS fraud cases. There is no impact on listed securities, trading operations, or broader market participants.

Impact Justification

This is a legacy enforcement/recovery matter specific to Four Season Farms Limited, an unlisted entity involved in CIS violations dating back to 2002. It has no broad market or listed-company implications.