In a significant judgment, a court has convicted Kisley Plantation Ltd and its directors in a decades-old case involving financial malfeasance. The company was found guilty under the SEBI Act for running an unlicensed collective investment scheme (CIS) that trapped many investors with promises of unrealistic returns.

Additional Sessions Judge Vandana Jain ruled that the company, along with its directors SP Rai, Mohammed Abul Kalam and Prem Lata, were responsible for the day-to-day operations of the company. They misled the public by promising tax benefits without proper registration, accumulating around Rs 2.43 crore.

The court’s ruling highlights the directors’ failure to provide any proof of payments to investors, pointing out that no report on the liquidation of the company was submitted to SEBI. With a potential sentence of up to 10 years or a fine of Rs 25 crore, the case awaits further proceedings.

(With input from agencies.)