Two Entities Pay Over Rs 81 Lakh To Settle Growpital Case With Sebi

New Delhi: Two entities have settled with markets regulator Sebi a case related to alleged fraudulent activities in the matter of agri-investment platform Growpital on payment of Rs 81.12 lakh towards settlement charges.

The settlement was reached by Nutrikosh India Pvt Ltd and Alok Chaudhary without “admitting or denying the facts and conclusions of law”, according to a Sebi order passed on Monday.

The regulator had issued a show cause notice (SCN) in March 2025 to 30 entities, including Nutrikosh India and Chaudhary, following its investigation into the Growpital platform.

The notice alleged that Nutrikosh aided and abetted other co-investors in fraudulent activities and acted as a conduit for transferring funds to the tune of Rs 7.03 crore.

It was further alleged that the entity played an active role in a scheme to collect funds from investors by promising assured tax-free returns. The funds were allegedly used to show fake revenues to attract more investors and acquire properties and assets.

The Securities and Exchange Board of India (Sebi) alleged violations of provisions of the Sebi Act and the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) regulations.

The Growpital platform matter dates back to January 2024, when Sebi passed an ex-parte interim order against eight entities, alleging that they had raised Rs 192.88 crore from the public through an unregistered collective investment scheme (CIS).

The interim order had directed the entities to cease and desist from carrying on CIS activities. The findings were subsequently confirmed through a confirmatory order in April 2024.

During the settlement process, Sebi’s internal committee recommended that the proceedings against Nutrikosh and Chaudhary be settled on payment of Rs 40.56 lakh per applicant.

The recommendation was subsequently approved by Sebi’s High Powered Advisory Committee and its Whole Time Members.

Thereafter, the applicants informed Sebi in June this year, that they had remitted the settlement amounts, and the regulator confirmed the receipt of the payments.

“I… in terms of the Settlement Regulations, direct that the proceedings initiated against applicants, vide the SCN dated March 3, 2025 are disposed of,” Sebi’s Whole Time Member Kamlesh Chandra Varshney said in the order.

However, Sebi retains the right to take further action if any misrepresentation is discovered or if the company breaches any terms of the settlement.

Meanwhile, Sebi on Monday levied fines of over Rs 25 crore on 28 entities, including Growpital and its founder Rituraj Sharma, and barred them from the securities markets for up to five years for running an unregistered collective investment scheme.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)