You are here: Home » Markets » News
Business Standard

Sebi orders attachment of bank, demat accounts of Aakruti Nirmiti, 2 others

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

SEBI | bank accounts | demat account

Press Trust of India  |  New Delhi 

Photo: Shutterstock

The Securities and Exchange Board of India (Sebi) has ordered attachment of 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, said.

In it notice, 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 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," 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 "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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, June 17 2022. 06:52 IST