Besides, the companies and their directors have been barred from raising money from the public as well as capital markets.
The Securities and Exchange Board of India (SEBI) found that the companies were raising funds from the public through their schemes without due registration with it.
With immediate effect, the company and its promoters and directors have been asked to abstain from collecting any money from the investors or launch any CIS.
Besides, they have been restrained from the securities market for a period of four years.
Also, they have been asked to wind up all existing CIS of the company and refund the collected monies, with returns which are due to its investors, as per the terms of offer, within three months.
Thereafter, within a period of 15 days, they have to submit a winding up and repayment report to SEBI, including the trail of funds claimed to be refunded, bank account statements (indicating refund) to the investors and receipt from the investors acknowledging such refunds.
SEBI has also asked them to submit a proof, including the trail of funds, bank statements to support its contention that it has refunded money to investors.
The regulator has asked them to immediately submit a complete and detailed inventory of the assets owned by Sai Prasad Properties and Sai Prasad Foods while they have been barred from alienating or disposing off or selling any of the assets of the company, except for the purpose of making refunds to investors.
If the company and its directors and promoters fail to comply with these directions, they would be barred from securities market even after the period of four years till the money is refunded to investors.
SEBI would make a reference to the state government/Local Police to register a civil or criminal case against them "for offenses of fraud, cheating, criminal breach of trust and misappropriation of public funds".
It further said that it would also make a reference to the Ministry of Corporate Affairs to initiate the process of winding up of the company, while it shall also initiate attachment and recovery proceedings in the event of failure to comply with its directions.

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