Rs4bil penalties slapped on B4U Group for defrauding people, SECP says

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has Saturday concluded adjudication proceedings against B4U Group and its sponsors for raising illegal deposits from the public and operating pyramid schemes, in violation of the Companies Act, 2017, ARY News reported citing regulator statement.

The B4U Group comprises 18 companies incorporated under the Act, as well as 05 unincorporated business setups.

The company regulator said that after completing the due process of law it has disqualified the sponsors of B4U Group from becoming a director of any company for a period of 5 years. Additionally, it has also imposed a penalty

of Rs100 million on each of its sponsors.

SECP has granted sanction for winding up of all 18 companies of B4U Group and imposed a penalty of Rs200 million on each company.

The aggregate penalties amounting to Rs4 billion have been imposed on B4U Group.

Moreover, said SECP, the group sponsors shall not be allowed to incorporate any new company under the Act.

All the 18 companies were registered during the last two years. The main sponsor of B4U Group is Mr. Saif-ur-Rehman, along with his immediate family members.

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