The Securities and Exchange Board of India (Sebi) has ordered attachment of bank accounts as well as share and mutual fund accounts of Aakruti Nirmiti Ltd and its directors to recover investors' dues totalling over Rs 95 crore.
The recovery proceeding has been initiated against them to recover Rs 95.81 crore, along with further interest, all cost, charges and expenses, Sebi said.
In it notice, Sebi asked banks, depositories and mutual funds not to allow any debit from the accounts of Aakruti Nirmiti Ltd (ANL) and those of its then managing directors -- Manilal V Patel and Vithal S Patel. However, credits have been permitted.
Further, the markets watchdog has directed all banks to attach all accounts including lockers held by the defaulters.
"There is sufficient reason to believe that the defaulters may withdraw the amounts/dispose of the securities in the account held by you and realisation of amount due under the certificate would in consequence be delayed or obstructed," Sebi said in an order passed on Wednesday.
In order to protect the interest of investors, it is necessary to attach the assets of the defaulters, including bank, demat accounts and mutual fund investments, to prevent any alienation of the same," it added.
In May 2021, the regulator had directed that Aakruti along with Manilal V Patel and Vithal S Patel shall forthwith refund to the investors the money collected by the company during their tenures through the issuance of equity shares (including the application money collected from investors), with an interest of 15 per cent per annum.
Besides, they were restrained from the markets "till the expiry of one year from the date of completion of refunds to investors".
According to regulator, Aakruti made allotment of equity shares to a total of 284 persons on seven instances from April 2007 to December 2007, hence, there was an obligation to file a prospectus in connection with the issue of securities and comply with the relevant provisions of DIP (Disclosure and Investor Protection) rules.
However, the company didn't comply with the regulatory provisions.
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