SEBI orders to attach bank, demat accounts of 2 dozen defaulters to recovers dues

New Delhi, Sep 2 (PTI) Markets regulator Sebi has ordered attachment of bank and demat accounts of two dozen defaulters in the matters of three companies -- Mass Infra Realty, Skymarg Agro Industries India and Life Care Real Developers -- to recover dues totalling nearly ₹ 40 crore.

The defaulters are 11 directors of Mass Infra Realty, five directors of Skymarg Agro, Life Care and its seven directors, the regulator said in three separate notices.

The decision has been taken after Mass Infra Realty and Skymarg Agro failed to comply with Sebi's direction to refund money to investors to the tune of ₹ 37.9 crore and ₹ 30.67 lakh respectively.

Sebi had directed Mass Infra Realty and Skymarg Agro in April 2016 and November 2017, respectively, to refund money to investors.

The two companies had raised funds through issuance of securities without complying with public issue norms.

In case of Life Care, the regulator initiated proceedings to recover over ₹ 73 lakh from the company and its seven directors after they failed to pay the fine imposed on them in January, 2019.

The pending dues include the initial fine amount of ₹ 65 lakh, interest of ₹ 8.1 lakh and a recovery cost of ₹ 1,000.

In attachment notices, Sebi asked banks and depositories to not allow any debit from the accounts of these two dozen defaulters. However, credits have been permitted.

Further, the capital markets watchdog directed banks to attach all accounts, including lockers, held by the defaulters.

Besides, Sebi has attached mutual funds holding of directors of Mass Infra Realty and Skymarg Agro.

The regulator said there is sufficient reason to believe that the defaulters may dispose of the amounts in the bank accounts and securities in the demat accounts, and "realisation of amount due under the certificate would in consequence be delayed or obstructed".