Servehit Housing & Infrastructure India: SEBI Cracks Down on Illicit Scheme


Securities and Exchange Board of India (SEBI) has barred Servehit Housing & Infrastructure India and its directors from raising money from public. A probe by the watchdog indicated that the company is involved in mobilisation of funds through alleged illicit real estate scheme.

SEBI has also asked Servehit Housing & Infrastructure India Ltd, its directors not to dispose off properties and assets acquired through its collective investment schemes (CIS) as well as not to divert the funds raised from such schemes.

Also, it has asked for a full inventory of assets owned by Servehit Housing out of the amounts collected from investors under the company's various schemes. The company has also been restrained from launching any new schemes.


In an order dated October 31, SEBI said that it began probing the alleged illegal mobilisation of funds by Servehit Housing on receipt of a complaint against the firm in 2010.

The company had offered a scheme towards "purchase, development & maintenance of plot" and allegedly mobilised money from public with resultant promise of returns. The regulator SEBI  has asked the company and its 5 directors to file their replies against the charges within 15 days from the date of the order.

According to SEBI preliminary probe, the scheme run by Servehit Housing wherein the company invited applications from public for booking a plot with promise of returns "has been camouflaged by Servehit Housing & Infrastructure India Ltd by terming it as a real estate business only to mislead and attract investment from public".


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