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The Securities and Exchange Board of India (Sebi) on Friday ordered the attachment of several bank accounts of Kolkata-based MPS Greenery Developers to recover over Rs 1,520 crore collected from investors through unauthorised collective investment schemes (CIS).
This is the biggest recovery proceeding initiated by Sebi after it has been granted new powers to attach bank accounts and properties.
The regulator has sent notice of attachment of bank accounts to seven lenders including ICICI Bank, Axis Bank and HDFC Bank, saying unless attached, MPS Greenery might dispose of funds in these accounts.
“There is sufficient reason to believe that the defaulter may dispose of the amounts in the bank accounts held in your bank and realisation of amount due under the certificate would be in consequence be delayed or obstructed,” Sebi said in the notice.
Sebi had passed an order against the company in December 2012 as well, directing it to wind up its CIS schemes and refund investors. The firm had violated Sebi’s earlier orders, too, to deposit all the money it had collected from investors. Sebi has now directed banks not to allow any debit from the bank accounts, including joint accounts and lockers. It has, however, allowed credit to these accounts.
Armed with new powers, Sebi has upped the ante against defaulters in recent weeks. Earlier this month, the market regulator had issued a similar notice of attachment of the bank accounts of the entities involved in the 2003-05 initial public offer scam.
Earlier, Sebi could only ban the violators from operating in the capital markets and it did not have the powers to recover money.
