Markets regulator Sebi has ordered attachment of 11 properties owned by Sumangal Industries, its promoters and the directors to recover Rs 85 crore, which the company had illegally collected from the investors.
The properties being attached include storied building, cold storage, flat and plots of land.
Most of these assets are located in West Bengal, as per the attachment order wherein Sebi has also asked the company, its promoters/directors to provide full details of all their movable and immovable properties.
Sebi had first passed an order in July 2013, wherein, Sumangal Industries its promoters/directors were directed to wind up the existing Collective Investment Scheme (CIS) and refund the money to investors within three months.
However, the company and its promoters/directors did not comply with the regulator's directions.
According to Sebi, Sumangal Industries was running an illegal 'potato purchase' investment scheme promising up to 100 per cent gain in just 15 months to investors.
Following Sebi's order, the firm approached Securities Appellate Tribunal (SAT). However, the appeal by Sumangal Industries against Sebi's clampdown on its potato purchase scheme had been rejected by the tribunal last month saying the firm made "vague prayers" and asked it to file a fresh plea.
In further action, Sebi in June this year had attached various bank accounts of the defaulters but could not find sufficient balance.
The recovery proceedings were initiated on June 2, for their failure to pay a sum of Rs 85 crore along with returns due to investors, along with further interest, all costs, charges and expenses incurred in respect of all the proceedings taken for recovery.
The Securities and Exchange Board of India (Sebi) said the defaulters failed to pay the amount and did not even respond to the recovery notices.
"The funds available in the bank accounts and the securities available in the demat accounts of the defaulters are not sufficient for recovery of the dues," Sebi said.
Therefore, to prevent the company, its promoters/directors from disposing transferring or alienating the assets with a view to obstruct the recovery proceedings, the regulator has ordered attachment of properties owned by them.
The regulator said it has learnt the defaulters are in possession of certain properties and they may dispose, transfer or alienate the assets to obstruct or delay the recovery of investors' money and therefore it was ordering the attachment.
Giving a list of all such properties, Sebi said that "all persons are hereby prohibited from taking any benefit under such disposal, transfer, alienation or charge in respect of the properties mentioned above, which stand attached in execution of the recovery certificate".
