November 07, 2013
PR No. 106/2013

Attachment of bank accounts in Recovery Proceedings by SEBI

SEBI had vide order dated July 21, 2009, inter alia, directed Mr. Dushyant Natwarlal Dalal and Ms. Puloma Dushyant Dalal (defaulters) to disgorge an amount of Rs. 6 crore in the matter of IPO irregularities. The appeals filed by the defaulters before the Hon'ble Securities Appellate Tribunal and the Hon'ble Supreme Court of India were dismissed by orders dated November 12, 2010 and February 21, 2011 respectively. Since the defaulters failed to pay the disgorgement amount, SEBI has initiated proceedings under Section 28A of the SEBI Act for recovery of the amount.
In exercise of powers under the Securities Laws (Amendment) Ordinance, 2013, SEBI has issued a Notice of Demand dated September 25, 2013 to the defaulters directing to pay Rs. 6 crore along with interest, cost, charges and expenses, etc. within 15 days. On failure of the defaulters to pay the amount even after lapse of the specified time, SEBI has attached various bank accounts of the defaulters. Pursuant to the said attachment, a sum of Rs. 10,82,287/- (Rupees Ten Lakh Eighty Two Thousand Two Hundred and Eighty Seven only) has been recovered from two bank accounts of the defaulters. Recovery of the balance dues from the other bank accounts of the defaulters is in progress. The dues recovered from the defaulters would be distributed to the unsuccessful investors in the IPO irregularities as recommended by the Justice Wadhwa Committee.
After promulgation of Securities Laws (Amendment) Ordinance, 2013, SEBI has issued 154 attachment notices towards recovery of Rs. 1545.19 crores from various defaulters and is in the process of ascertaining the amounts available in the bank accounts held by the respective defaulters.


November 07, 2013