Markets regulator Sebi has ordered attachment of bank and demat accounts of Kuber Planters to recover dues of over Rs 2,400 crore, pending for nearly 15 years, for violation of norms.
The pending dues include fine imposed on the firm, along with interest, charges, expenses and other costs.
The latest order comes after the regulator in December 2000 and July 2001 had directed the firm and its directors to refund investors’ money mobilised through illegal means. However, the company had failed to comply with the earlier directives.
In 2013, Sebi was granted power to initiate attachment proceedings against defaulters, including individuals and companies. Prior to that, the regulator did not have such powers.
Exercising its powers to recover penalty from defaulters, the Securities and Exchange Board of India (Sebi) has ordered attachment of bank and demat accounts of Kuber Planters to recover dues worth Rs 2,462.17 crore.
In an attachment order, Sebi has directed banks to attach all accounts, including lockers, held by the company.
Similarly, the regulator has directed depositories — NSDL and CDSL — to attach all demat accounts of the defaulter.
The watchdog has also asked for various details of the accounts held by the firm, including account statements.
In October 2002, the regulator had requested the authorities to register FIR against 44 collective investment scheme (CIS) entities, including those of Kuber Planters, for alleged criminal breach of trust, cheating and criminal conspiracy against investors.