Sebi orders attaching of SVPCL's properties.

Capital markets regulator Sebi has ordered attaching two properties owned by SVPCL Ltd to recover dues worth Rs 7.41 crore.
The matter relates to refund of application money, along with interest, to investors who had applied for SVPCL's initial public offer.
The two properties being attached are located in Hyderabad and Vijayawada. Besides, the regulator has attached other movable properties held by the defaulter.
The Securities and Exchange Board of India (Sebi), in December 2014, had issued notice to SVPCL demanding payment of the sum "along with returns, interest, costs, expenses etc, within 15 days".
It had also attached various bank accounts of the firm. However, the defaulter failed to pay the dues and did not even respond to the notices.

Accordingly, to prevent SVPCL from disposing transferring or alienating the assets with a view to obstruct the recovery proceedings, Sebi has ordered attachment of properties owned by the company.

The regulator said the defaulter is in possession of certain properties and it may dispose, transfer or alienate the assets to obstruct or delay the recovery of investors money and therefore it was ordering the attachment.
Giving a list of all such properties, Sebi has prohibited the company from "taking any benefit under such disposal, transfer, alienation or charge in respect of the properties mentioned above, which stand attached in execution of the recovery certificate".

The company had floated its IPO in October 2007, and raised Rs 34.5 crore. However BSE stalled the listing, citing negligence on the part of merchant bankers.
In May 2008, Sebi advised the merchant bankers to ensure refund of the application money to all investors along with the applicable rate of interest.
After constant and repeated advices issued by Sebi, the company had refunded the application money. However, the payment of interest liability was not discharged. Thereafter Sebi, in April 2012, had directed the firm to pay the interest due to investors.