Sebi orders recovery of Rs 115 crore from GN Dairies for violation of norms

Capital markets regulator Sebi has ordered attachment of bank and demat accounts of GN Dairies Ltd and its directors to reclaim over Rs 114 crore for violation of norms.

The firm violated various market norms and failed to comply with Sebi's earlier directive to refund investors' money along with interest.

The pending dues include fine imposed on them along with interest, charges, expenses and other costs.

The Securities and Exchange Board of India (Sebi) has ordered the recovery of Rs 114.68 crore from the firm and its directors.

In November 2014, the regulator had asked the firm to wind up unauthorised dairy investment scheme run by it and to refund investors' money within three months.
 

"There is sufficient reason to believe that the defaulter may dispose of the amount proceeds in the bank accounts held with your bank and realization of amount due under the certificate would in consequence be delayed or obstructed," Sebi said.

The regulator also said that the company may also dispose of the securities/ instrument in the demat accounts to delay payment.

Sebi has directed banks to attach all accounts including lockers held by the company and its directors.

Similarly, the regulator has directed depositories - NSDL and CDSL - to attach all demat accounts of the defaulters.

The regulator has also asked for various details of the accounts held by the firms, including account statements.

Sebi has been given powers to attach properties and bank accounts, among other things, of persons and entities which have failed to comply with directions involving payment of penalties and other dues.

In its another crackdown, Sebi has ordered attachment of bank and demat accounts of 10 companies to recover dues totalling over Rs 85 lakh for violation of disclosure norms.

The companies are Gazala constructions, Kinita Real Estate, Jayalalita Commodities, Invidar Traders, Nazima Impex, Viaggio Entertainment, Enakshi Impex, Grantview Properties, Lakeside Properties and Concord Reality.

All these companies are related to each other as they were penalised by Sebi for not making timely disclosure about their change in shareholdings in Mahan Industries, and also failed to respond to the summons issued by the regulator.

The dues include interest, charges, expenses and other costs.

In 10 separate and similarly worded orders, Sebi has ordered banks to attach all accounts including lockers held by the companies and their directors and directed NSDL and CDSL to attach all demat accounts of the defaulters.

Details of the accounts held by the firms, including account statements are also been asked by Sebi.