Markets regulator Sebi has ordered attachment of bank and demat accounts of MARS Agrofarm Developers and its three directors to recover pending dues of over Rs 25 lakh in a case related to illegal fund raising. The order came after the four entities failed to comply with a Securities and Exchange Board of India (Sebi) direction to refund the investors. In 2011-12, MARS Agrofarm had collected Rs 25 lakh by issuing Redeemable Preference Shares (RPS) to at least 237 investors. Last year, the firm and its three then-directors were ordered by Sebi to refund the investors after the regulator found that funds were raised without complying with the public issue norms. The pending dues include the returns due to the investors, along with "further interest, all costs, charges and expenses incurred" in respect of all the proceedings taken for recovery of the sum. Exercising its powers to recover penalties from defaulters, the Securities and Exchange Board of India (Sebi) has ordered attachment of bank and demat accounts of MARS Agrofarm and its directors to recover the pending dues. In an attachment order dated May 18, Sebi has directed banks to attach all accounts including lockers held by the entities.
Also, it has directed depositories -- NSDL and CDSL -- to attach all demat accounts of the defaulters. The markets regulator has been given powers to attach properties and bank accounts, among other things, of persons and entities which have failed to comply with directions involving payment of penalties and other dues.
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