Sebi orders attachment of bank, demat accounts of Vibgyor Allied Infra, 3 others

Updated : January 21, 2021 05:09 PM IST

Markets regulator Sebi has ordered attachment of bank accounts as well as share and mutual fund holdings ofVibgyor Allied Infrastructure and three individuals to recover dues totalling Rs 61.76 crore.

The recovery proceedings have been initiated against the entities after they failed to repay investors' money as directed by the Securities and Exchange Board of India (Sebi) in 2014.

Sebi had found that Vibgyor raised Rs 61.76 crore from 49,562 investors through optionally fully convertible debentures (OFCDs) in violation of the statutory requirements. The company had raised money by way of issue of debentures from a large number of persons, without complying with various provisions of the Companies Act as well as Sebi regulations.

In a notice on Wednesday, Sebi ordered attachment of bank as well as demat accounts of Vibgyor and three individuals--Raja Bhadra, Rana Bhadra and Rabindra Nath Dey-- to recover the pending dues. Sebi asked banks and depositories not to allow any debit from the accounts of these entities. However, credits have been permitted.

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

In February 2014, Sebi had directed Vibgyor and three individuals to refund the money along with 15 per cent annual interest rate within three months.Besides, they were restrained from buying, selling or otherwise dealing in the securities markets. In a separate notice, the regulator has ordered attachment of bank and demat accounts of Karmbhoomi Real Estate and five individuals to recover Rs 63.5 lakh.

The five individuals are -- Devendra Pal Singh, Sardar Singh, Nirmal Kumar Singh, Manoj Kumar Sengar and Mahipal Singh. The move is part of Sebi's effort to recover pending dues worth Rs 63.5 lakh, which included initial fine amount of Rs 50 lakh and an interest of Rs 13.5 lakh.

In September 2018, Sebi had imposed a fine of Rs 50 lakh on Karmbhoomi Real Estate and its directors for collecting money from investors through illegal collective investment schemes.

Published : January 21, 2021 05:09 PM IST

Sebi orders attachment of bank, demat accounts of Vibgyor Allied Infra, 3 others

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