Mumbai: Markets regulator SEBI has ordered attachment of bank and securities accounts of over 40 entities so far this year to recover pending dues worth more than Rs 140 crore from defaulters. The 44 defaulters against whom recovery proceedings were initiated by SEBI include - Wasankar Wealth Management and Kolkata Weir Industries - that had fraudulently raised funds from public. Securities and Exchange Board of India (SEBI) has ordered attachment of banks and securities accounts of these entities to recover Rs 140.64 crore, as per the orders passed by the capital market regulator. Of this, Rs 90 crore is to be recovered from Wasankar Wealth and Rs 47.9 crore from Kolkata Weir Industries.
SEBI began initiating attachment proceedings against defaulters, including individuals and companies, in October 2013, as part of the greater powers granted to it by the government. Since then, the capital market regulator has launched over 1,950 attachment proceedings for recovery of penalties imposed in as many as 600 cases. Meanwhile this year, SEBI has managed to recover dues including fines worth nearly Rs 1.6 crore from 16 entities.
These cases involved recovery of collective penalties totalling close to Rs 2,000 crore imposed on various entities for violating capital market norms. The market regulator also released attachment orders in cases where dues have been paid by the defaulters, while defreezing the bank and demat accounts, among other assets. Recovery proceedings by SEBI involve attachment of bank accounts, movable and non-movable properties, shares and debentures, among others, against those having defaulted on paying penalties or refund of investors' money.
Under these powers, the regulator can pass orders like search and seizure, attachment of properties, arrest and detention of defaulters. Besides bank accounts, SEBI has also in various proceedings ordered depositories - NSDL and CDSL - to attach the demat securities accounts of the erring entities. Besides, the regulator has also initiated auction process for sale of attached properties in some cases.
