Sebi directs individual to pay Rs 8.86 lakh pending dues

Market regulator Sebi today directed one Alka Pandey to pay Rs 8.86 lakh dues pending in the matter of Alka Securities case.
The Securities and Exchange Board of India (Sebi), in May, had initiated a recovery proceedings against Pandey in the matter of Alka Securities for recovery of Rs 25 lakh imposed by the regulator "alongwith interest all costs, charges and expenses."
The regulator had slapped the fine on June 28, 2011 for violating securities law.
Following Sebi's recovery proceedings, Pandey moved to Securities Appellate Tribunal (SAT). After hearing both parties SAT, last month, directed Pandey to pay an amount of Rs 25 lakh immediately and the same was complied. However, she did not pay interest amount.

Besides, the tribunal asked Sebi to issue a show cause notice to Pandey for recovery of interest if any on the amount of Rs 25 lakh by her from the date of regulator's order till the payment. Consequently, Sebi has informed Pandey about the interest that has to be paid.
However, Pandey contended that no interest can be claimed for any period prior to the notice demand sent by Sebi in May this year.

"The defaulters like noticee (Pandey), inspite of having sufficient means to pay, wilfully wait till Sebi imitates action for recovery of dues and thereafter contend that they need not pay interest for their default," Sebi said in an order today.

"...Defaulter/noticee is liable to pay interest from the date of Adjudication (Sebi's)order till the date of payment of penalty, alongwith the costs, expenses etc as directed under the notice of demand (sent in May this year)," the regulator said.
Accordingly, dues has been worked out as simple interest on Rs 25 lakh at the rate of 12 per cent annually from June 28, 2011 till June 10, 2014 as Rs 8.86 lakh.
"The defaulter, Alka Pandey, is directed to pay dues of Rs 8.86 lakh," Sebi said.