What Went Wrong With Growpital's Investment Model?
Origin
Growpital, founded in 2020, assured investors of high returns with minimal risk through agricultural investments, using enticing ads and webinars.
Investor Plight
The Guptas, like over 5,200 others, received just one payout. Since then, no returns have been received, causing severe financial distress.
Operational Collapse
Employee count plummeted from 100 to under 5. The website is down, and investors struggle to access their funds.
SEBI Intervention
SEBI froze Growpital's accounts in January 2024, revealing that the company was operating without proper regulatory licenses and was essentially a fraudulent scheme.
Modus Operandi
Growpital used multiple entities to pool funds under the guise of agricultural investments, misleading investors about the true state of their operations.
Regulatory Breaches
MCA imposed a penalty of INR 1.47 Cr on Yotta Agro, Growpital's partner entity, for various regulatory violations and ordered refunds to investors.
Ongoing Struggle
Investor-partners are now pursuing legal action while struggling to recover their investments, awaiting SEBI's final order and potential relief from the frozen funds.
How Growpital’s Investment Model Left 5K+ Investor-Partners In The Lurch