Markets regulator Sebi today ordered attachment of bank and demat accounts of Kolkata-based NVD Solar and its promoters and directors for recovery of Rs 1,000 crore -- making it one of the biggest attachment orders.
The Securities and Exchange Board of India (Sebi) had ordered NVD Solar in November 2014 to refund Rs 595 crore that the company had illegally raised from the public. It had set a three-month deadline for the return of the money with 15 per cent interest.
With the company having defaulted on the refund, Sebi has now initiated recovery proceedings by attaching the bank and demat accounts of NVD Solar and its promoter/directors to recover the amount, along with applicable interest and other costs, totalling Rs 1,000 crore.
The company and its promoters/directors -- Saibal Kumar Hazra, Subrata Kumar Mondal and Dipsekhar Mukherjee -- were also barred from raising money in the capital market for three years from the date of completion of the refund.
A Sebi probe found that NVD Solar had raised Rs 595 crore through issuance of fresh equity shares to 1,09,480 entities during 2012-13 without complying with the regulatory provisions applicable for a public issue.
However, NVD Solar and its promoters/directors have failed to comply with Sebi's order.
Sebi has to recover Rs 595 crore along with a 15 per cent interest and related costs, totalling Rs 1,000 crore.
Accordingly, in a fresh directive Sebi has asked banks to attach all accounts, including lockers held by the entities.
Similarly, the regulator has directed depositories - NSDL and CDSL -- to attach all demat accounts of the defaulters.
Sebi informed the banks and the depositories that there was "sufficient reason" to believe that defaulters may dispose of the amounts in the accounts and "realisation of amount due under the certificate would in consequence be delayed or obstructed".
The regulator has also asked banks to attach the lockers held by the entities as well as "all other amount/proceeds due or may become due to the defaulters or any other money held or may subsequently hold for or on account of defaulter".
