In a setback to Adel Landmarks Limited, a real estate enterprise, the SEBI directed the company and its directors to refund the money collected from the public under its ‘pre-booking of plots’ scheme. Adel, without registration and approval under SEBI’s Collective Investment Schemes (CIS) Regulations, collected the money from the public for purchase /acquisition of future land for development of residential colonies. Adel contended that it collected the money for pre-booking of plots being developed on the land already owned by it either directly or through subsidiaries. The SEBI through its whole time member, on the other hand, examining the agreements by Adel with perspective buyers and other materials on record found that Adel was pooling money to purchase future land which amounts to scheme/arrangement under S. 11AA(2)(i) of the SEBI Act, 1992. He observed that the Company has solicited investments with a promise of refund of investment amount along with return in the nature of co...