Now, SEBI asks govt to act in Bike Bot scam

Noida: Market regulator Securities and Exchange Board of India (SEBI) has asked the UP government to take necessary action in the Rs 42,000 crore Bike Bot scam, in the wake of multiple complaints from investors in the Ponzi scheme.
The investors had sent multiple complaints via emails and in physical form to SEBI alleging that the massive fraud by against the Garvit Innovative Promoters Limited comes under the purview of the Banning of Unregulated Deposit Schemes Bill, 2019, under which the amount collected from public by undue methods should be refunded to them within 180 days.
The letters were sent by the investors in bulk to SEBI over the past two months, following which the local office of the market regulator in Lucknow wrote to the UP chief secretary on September 24, TOI has learnt.
“It appears prima facie that the company is involved in money mobilisation through multi-level marketing/pyramid marketing schemes which may be in violation of the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. In view of the above, the complaints in this matter are forwarded to your office for further needful,” read the letter.
Manoj Singh, one of the investors who is from Noida’s Challera, who has also received a copy of letter from SEBI, said that during the months of August and September, investors from across the country, including Kota, Noida, Delhi and Pathankot, had written to the SEBI against the company.
In his letter to SEBI, her wrote: “Under the Banning of Unregulated Deposit Schemes Act, 2019, which has a provision that those companies/organisations/groups or networks which accept unregulated deposit schemes or defraud any person by claiming to double the amount misleading him/her, the state will lodge an FIR against the accused and ensure that the money along with fine in 180 days.”
“Apart from this, the act also bans the advertisement of any illegal investment scheme and the advertisers too are liable for action. Despite a year having passed after the enactment of the act, the centre and the state governments have made no effort for implementation of the act,” he added.
Hundreds of such letters have been sent to the SEBI demanding action against Garvit Innovative in which investors had threatened to gherao the Parliament on September 30. With the response from the SEBI, investors have intensified their demand for action against the accused and speedy disbursal of the money they had invested in the company.
So far, scores of FIRs have been lodged against the company whose key directors have been arrested by Gautam Budh Nagar police and the economic offences wing, Meerut.