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SEBI imposes Rs 16 lakh penalty on 4 entities in Sanjay Dangi case

In four separate orders dated 28th February, SEBI has imposed a penalty of Rs5 lakh each on Parag Vanijya and Lucky Holdings and Rs3 lakh fine each on Khushi Distributors and Raxon Motor Finance for not submitting complete information required by the regulator

The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs16 lakh on four entities for failing to provide information sought by it in a case related to alleged share price manipulation by Sanjay Dangi group and associates.

 

In four separate orders dated 28th February, SEBI has slapped a fine of Rs5 lakh each on Parag Vanijya and Lucky Holdings and Rs3 lakh fine each on Khushi Distributors and Raxon Motor Finance.

 

Read the earlier Moneylife report: Sanjay Dangi’s portfolio stocks hit by margin pressures?

 

The regulator said these entities had not submitted complete information, including investments made in dummy firms created by Murli Industries, bank details of promoters, shareholder and investments in other private companies among others, required by it.

 

“I note that not submitting complete details to the summons despite having the same appears to be an act on part of the noticee (Parag Vanijya, Lucky Holdings, Khushi Distributors and Raxon Motor Finance) to not co-operate with the regulatory mechanism,” SEBI adjudicating officer Piyoosh Gupta said in a similar worded order.

 

“I also note that such non-cooperation and default definitely compromises the regulatory framework and acts as an impediment to the functioning of the investigation process of SEBI,” he added.

 

 The regulator had passed an interim order in December 2010 banning Dangi, his associates and promoters of four companies—Murli Industries, Ackruti City, Welspun Corporation and Brushman India- from dealing in the equity markets following allegations of price manipulation. (Read more: Sanjay Dangi, another barred market manipulator, still pulling strings)

 

The SEBI order had followed an income tax department probe. The regulator’s probe had revealed a well-planned strategy to manipulate the share price of the company before the issuance of the Foreign Currency Convertible Bond (FCCBs).

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COMMENTS

NSriramamurty

4 years ago

SEBI's Seriousness in Investigation is to be kept up , to get fruitful results.Good Work.

Over Rs22,636 crore lying in inoperative PF accounts

According to minister of state for labour and employment Kodikunnil Suresh, member-wise account of inoperative accounts was not maintained centrally in the Employees Provident Fund Organisation

More than Rs22,636 crore is lying in inoperative accounts in the Employees Provident Fund, minister of state for labour and employment Kodikunnil Suresh informed the Lok Sabha on Monday.

 

We had earlier written: Half of the money with EPFO Nagpur office is unclaimed deposits! (Half of the money with EPFO Nagpur office is unclaimed deposits!)

 

The minister said the data relating to member-wise account of inoperative accounts was not maintained centrally in the Employees Provident Fund Organisation (EPFO). As per state-wise details, the total sum in inoperative accounts amounted to Rs22,636.57 crore, he added.

 

Answering another question, he said from 2010 onwards, there had been 65 complaints by labourers alleging harassment or exploitation by EPFO officials.

 

Replying to another question, the minister said from 2010 onwards, 398 complaints had been received by EPFO’s Vigilance Wing.

User

COMMENTS

CA PRADEEP AGARWAL

4 years ago

Are the EPF people giving Annual statements to members, i.e. by post

CA PRADEEP AGARWAL

4 years ago

Are they transferring funds to other PF accounts when requested and if not why?
Are they making payments when requested if not why?
Who will pay Interest whose funds have not been transferred. Whether Interest will be paid by the Govt. or PF dept. employees.
That is why there is so much accumulation and shown as unclaimed.In actuality the position is somewhat different.

NSriramamurty

4 years ago

In Exempted EPF a/cs by Companies,they give Annual Statements to Members - Govt. EPF Office do not give them. Now that EPF Offices have Computerised their Accounts , They can easily send Annual Statements to Members to their Addresses Direct.It Helps Members to Know and Claim Back.
2 ) For these UnPaid Amount of Rs. 22,636 Crores , States EPF Offices Can Display in their WEBs , with Amount,Name & Address of Member, Account Number, so that Genuine Member / Heirs Can Claim the Amounts. ( 3 ) Blocking Hard Earned Money of Members During their Service Amounts to Crime.

REPLY

CA PRADEEP AGARWAL

In Reply to NSriramamurty 4 years ago

I do agree with Mr NSriramamurty. Feel they have no heart in the hard earned money of members

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