Sebi to attach MPS Greenery shares to group firm

Tightening noose on West Bengal-based MPS Greenery Developers for running fraudulent investment schemes, market watchdog Sebi today ordered attachment of its shares in a group firm for failing to refund Rs 1,520 crore with returns to affected investors.
These attachment orders follow recovery proceedings initiated by Sebi earlier in October 2013, when the market regulator had asked this West Bengal-based to return Rs 1,520 crore collected from investors through unauthorised collective investment schemes (CIS).
This is the biggest recovery proceeding initiated by Sebi after it was granted new powers to attach bank accounts and properties. Sebi has sent attachment notices for at least 51 accounts held by the group with eight banks.

After the group failed to return the money to investors, Sebi today issued two fresh attachment orders to MPS Greenery Developers Ltd and its group firm MPS Food Products Ltd.
As per these orders, "MPS Greenery has not paid the dues amounting to Rs 1,520 crore along with returns to the investors" in respect of Sebi's recovery proceedings, as also the interest, costs, charges and other related payments.
Accordingly, the two companies have been prohibited and restrained from transfer of shares held by MPS Greenery Developers in MPS Food Products, or from creating any encumbrance or receiving any dividend on such shares.