The order also directs Sebi to transfer sums realized from the sale of attached properties of the company to the RP.

Pancard Clubs had raised Rs. 7000 crore from 50 lakh individuals before the company went bust.

Sebi is investigating the company for running an unregistered collective investment scheme (CIS). The scheme was allegedly an investment scheme in the disguise of a club membership program allowing access to members to use the company’s resort properties for vacationing

The market regulator has also challenged the insolvency proceedings of the company at national company law appellate tribunal (NCLAT) arguing that this would hinder its efforts to sell the properties that are in its custody and realize money for the 50 lakh affected individuals.

The company is believed to own about 14 properties.

NCLT had ruled that the investors had a right to invoke insolvency against the company irrespective of other ongoing investigations by regulators as long as it was evident that the nature of their subscription to Pancard Clubs membership program was such that it could qualify as a financial debt.