Sebi orders attachment of Shah Group Builders properties

Markets regulator Sebi has ordered attachment of five assets of Shah Group Builders Ltd and its directors to recover pending dues totalling Rs 3.62 crore in a case related to unauthorised fund raising.
The properties being attached are two land parcels, two residential flats and a Toyota Fortuner.
All the assets are located in Mumbai, as per attachment order wherein Sebi has also asked the firm, its promoters/ directors -- Nalin Viraj Shah, Nirav Nalin Shah and Neelam Nalin Shah -- to provide full details of all their movable and immovable properties.
Sebi had passed an order in July 2015, wherein, Shah Group Builders and its promoters/directors were asked to refund the money raised from investors within one year. Also, they had been ordered to pay 15 per cent interest along with the refund amount.

However, the company and its promoters/directors did not comply with the regulator's directions.
A probe by Sebi found that the company had raised the money through issue of shares to more than 1,500 people between July-November 2008 without complying with the regulatory provisions applicable for a public issue.

The recovery proceedings were initiated in October 2016 for their failure to pay a sum of Rs 3.62 crore along with returns due to investors.
Further, in November last year, defaulters were directed to remit the funds lying in their accounts and notices were issued to banks in this regard. In January 2017, Sebi had reminded banks regarding it.

"In spite of granting sufficient time, the defaulters have failed to pay any money towards the dues. Therefore it is felt necessary to attach the assets of the defaulter, as the money available in the bank and demat accounts are not sufficient to cover the total dues," Sebi Recovery Officer D V Sekhar said in an order dated February 23.
The regulator has prohibited the entities from taking any benefit by way of disposal, transfer, alienation or charge in respect of the properties. They have also been asked to provide full details of all their movable and immovable properties.
Sebi has powers to attach properties and bank accounts, among other things, of persons and entities that have failed to comply with directions involving payment of penalties and other dues.