Samruddha Jeevan Foods and its directors are barred from raising money from investor under any of its schemes. SEBI also asked them not to dispose of any assets or divert funds raised from public
Market regulator Securities and Exchange Board of India (SEBI) has asked Samruddha Jeevan Foods India Ltd and its directors Mahesh Kisan Motewar, Vaishali Mahesh Motewar and Ghanshyam Jashbhai Patel not to collect money from investor.
In an order, S Raman, whole time member of SEBI directed the company and its directors "not to collect any more money from investors including under the existing schemes, not to launch any new schemes, not to dispose of any of the properties or alienate any of the assets of the schemes and not to divert any funds raised from public at large which are kept in bank account(s) and/or in the custody of the company."
SEBI said Samruddha Jeevan Foods was prima facie found to be engaged in fund mobilising activity from public by floating 'collective investment schemes' (CIS) as defined in Section 11AA of the SEBI Act.
SEBI has already initiated attachment proceedings against 200 entities including MPS Greenery, Pyramid Saimira for recovery of investor money as well as to collect long-pending penalties for various market related defaults
Market regulator Securities and Exchange Board of India (SEBI) has initiated attachment proceedings in about 200 cases for recovering investors' money and unpaid penalties from various defaulters.
As part of its recovery proceedings, the regulator has served orders to various banks to attach the accounts of those who have not paid penalties imposed on them for violations of various securities market regulations.
These include freezing of bank accounts for recovery of funds totalling nearly Rs1,550 crore, which includes over Rs1,500 crore for one single case involving an illegal collective investment scheme (CIS) in West Bengal.
In this case, SEBI has ordered attachment of over 50 bank accounts of MPS Greenery Developers for recovery of Rs1,520 crore, along with applicable returns, collected from investors through its illegal schemes.
SEBI has also issued notices for attachment of bank accounts in other matters, including Pyramid Saimira case of 2012 and IPO fraud of 2003-2005.
Besides, the recovery proceedings have been initiated against many entities for their failure to make the penalties imposed on them for various securities market violations.
As on June 2013, penalties worth around Rs121 crore were pending from over 1,300 individuals and entities. Some of the penalties are pending for over a decade.
The proceedings have been launched in a period of little over a month and have been initiated as part of SEBI's new powers to order freezing of bank accounts, attachment of properties, conduct of search and seizure operations and launch of recovery proceedings.
The markets regulator is also holding consultation with Central Bureau of Investigation (CBI), Tax Department, Enforcement Directorate (ED) and other investigative and enforcement agencies to beef up its own competence in exercising newly granted powers.
SEBI has also set up a separate recovery department under its enforcement division to carry out recovery proceedings and other search and seizure operations.
Besides, bulk of new staff being hired by SEBI, including 75 officers in recently initiated recruitment drive, would be used for such roles.
Beginning late September, SEBI has already initiated close to 200 attachment proceedings for recovery of investor money amassed through illicit schemes, as also of long-pending penalties for various market related defaults.
Through an ordinance promulgated by the government, SEBI has been given direct powers to freeze bank accounts, attach properties, conduct search and seizure and initiate recovery proceedings. To replace this ordinance, the Securities Laws (Amendment) Bill, 2013 is expected to be presented before Parliament in the next session. The ordinance has already been promulgated twice, the last being in September.
SEBI has been seeking these powers for long to better regulate markets and take to task the fraudsters and other defaulters more effectively. Soon after the promulgation of the ordinance, SEBI began exercising these powers and has put in place necessary operational mechanism, including those requiring changes in the manpower deployment.
The apex court has asked Sahara group to hand over title deeds of properties worth Rs20,000 crore to SEBI within three weeks
The Supreme Court on Monday directed the Sahara group to handover title deeds of properties worth Rs20,000 crore to market regulator Securities and Exchange Board of India (SEBI) within next three weeks. Failing to which, the apex court said Sahara group chief Subrato Roy and other directors will be barred from leaving the country without its permission.
"You indulge too much in hide and seek, we cannot trust you anymore. There is no escape and the money has to be paid," the apex court told Sahara.
Earlier in April, the Supreme Court while slamming the Sahara group for approaching Allahabad High Court and other forums had said, “You are manipulating courts”.
It may be recalled that Mr Roy through his advertisements had challenged SEBI to an open debate on an issue that had gone through a long legal process and where the group had used every legal forum available to it to file multiple appeals and challenges to stymie SEBI’s investigation.
On 10th April, the Sahara group chief and three of its directors, Vandana Bhargava, Ashok Roy Choudhary and Ravi Shankar Dubey made a personal appearance before the market regulator. However, Mr Roy continued his tirade saying that the market regulator was more worried about his personal assets than refunding the money to investors of Sahara (read more Subrata Roy continues his tirade against SEBI after personal appearance
SEBI on 13 February 2013 passed two separate orders, together running into 160 pages, directing attachment of properties and freezing of accounts. It had said that in furtherance to a Supreme Court order directing refund of investors’ money collected by the two Sahara group companies, it ordered “attachment of all moveable and immoveable properties, bank accounts and demat accounts of these two companies and that of its promoters and directors Subrata Roy, Vandana Bhargava, Ashok Roy Choudhary and Ravi Shankar Dubey”.
The assets ordered to be attached included those related to the group’s Aamby Valley resort town near Pune, other real estate assets in Delhi, Mumbai and at other places across the country, shares, mutual funds and various other investments.
Passing the attachment orders, SEBI had said that the two companies had raised Rs6,380 crore and Rs19,400 crore, respectively from bondholders and “various illegalities” were committed in the raising of these funds.