Mumbai: To recover dues of Rs 52 lakh, market regulator Sebi has barred an individual from disposing of assets since his bank and demat accounts have inadequate funds to pay the penalty imposed for violating various norms.
Sunil Kumar Mehta had been penalised by the regulator for violating securities market regulations but had failed to pay the fines imposed on him.
Subsequently, the Securities and Exchange Board of India, in November, had initiated recovery proceedings against Mehta by ordering attachment of his bank accounts and demat accounts.
In a prohibitory order issued on December 19, the market watchdog observed that funds available in the bank accounts and the securities available in the demat accounts of the defaulter were "not sufficient towards the dues".
Further, Sebi noted that Mehta "may dispose or transfer or alienate the assets with view to obstruct or delay the recovery proceedings, which needs to be prevented immediately".
"...The defaulter is hereby prohibited from disposing, transferring, alienating or charging in respect of all immovable properties held by the defaulter as well as all the movable properties held by the defaulter," it said in the latest order.
The properties include a flat in Kandivali East, Mumbai.
Mehta has also been asked by Sebi to furnish complete details of all the movable and immovable properties held by him, copies of all title deeds, valuation reports of all the properties as well as details of debtors (persons from who money is due to him), among others.
The market regulator also prohibited any person "from taking any benefit under such disposal, transfer, alienation, or charge in respect of the properties".
Earlier on November 14, Sebi had issued attachment orders against Mehta to recover dues amounting to Rs 37.68 lakh.
Separately on December 5, the regulator had issued another attachment certificate to recover an amount of Rs 14.29 lakh.
Sebi is armed with powers to pass orders like search and seizure, attachment of properties as well as arrest and detention of defaulters.
