Sebi today directed Vinod R Hingorani, who defaulted in paying penalties of over Rs 1 crore, to pay at least Rs 30 lakh within four weeks.
Hingorani was the chairman and managing director of Adam Comsof Ltd, Kolar Biotech and many other companies.
After concluding that the defaulter is liable to be arrested and also considering that the individual has served civil imprisonment for 85 days, Sebi said it is giving an opportunity for the person to pay the dues.
"I hereby direct the defaulter to pay at least Rs 30 lakh within four weeks from the date of receipt of the order, failing which steps will be initiated for his arrest...," Sebi's Recovery Officer D V Sekhhar said.
Through three separate orders, in 2010, Sebi had imposed a total penalty of Rs 1.1 crore on Hingorani.
After the person failed to pay the penalty, the Recovery Officer had ordered him, on December 18, 2014, to be imprisoned in a civil prison.
On an appeal against the order filed by the defaulter, Bombay High Court ordered, on March 10, 2015, his release. Besides, the matter was referred to Sebi's Recovery Officer for conducting an inquiry and pass fresh order within three weeks which was extended to April 20.
Even after initiation of recovery proceedings, the individual has been continuously "refusing and neglecting to pay... Which is a loss to the exchequer as the same is remittable to the Consolidated Fund of India. Therefore, I am convinced that the defaulter shall be arrested and detained in civil prison," Sekhar said.
