Sebi has ordered the attachment of bank accounts as well as shares and mutual fund holdings of 10 individuals to recover Rs 1.25 crore, saying they have not complied with the regulator’s investigation in the matter of Eros International Media Ltd. The recovery proceedings were initiated against these 10 individuals — Gourab Ray Chaudhuri, Manisha Kumari Singh, Vinod Kumar Agarwal, Sutapa Mukherjee, Sumit Bhoot, Abhishek Das, Dev Govind Binani, Debosmita Ghosh Dastidar, Debjit Medda, and Anindya Bikas Datta — after they failed to pay the fine imposed on them by the regulator, Sebi said in 10 separate orders passed on Thursday and Friday.
In its notices, the Securities and Exchange Board of India (Sebi) has ordered attachment of bank, demat accounts and mutual fund folios of these individuals to recover pending dues.
Going by the notices, dues of totalling Rs 1.25 crore were pending with these individuals with the amount including interest and recovery costs.
As per the notices, Sebi said there is sufficient reason to believe that the defaulters may dispose of the bank accounts and securities in the demat accounts or mutual fund folios and “realisation of the amount due under the certificate would, in consequence, be delayed or obstructed”.
Accordingly, the regulator has asked all banks, depositories, mutual funds not to allow any debits from the accounts of these individuals. However, credits have been permitted.
Further, the markets watchdog has directed all banks to attach all accounts, including lockers, of the defaulters.
In October last year, Sebi slapped penalties totalling Rs 2 crore on 17 entities, including these 10 individuals, for non-compliance with its investigation and failure to provide complete and timely information in the matter of Eros International Media Ltd.
The matter pertains to alleged financial irregularities and mismanagement concerning agreements between Eros International Media Ltd (EIML) and Spicy Entertainment & Media Ltd (SEML), along with other related entities.
In June 2023, the regulator, in an interim order, prohibited five entities, including Eros International, from the securities markets in a case pertaining to the possible diversion of funds based on prima facie findings.
Thereafter, the regulator confirmed the ban against them in October 2023, through a confirmatory order.
