Sebi initiates Rs18.14 cr recovery proceedings

Sebi has initiated proceedings to recover dues of Rs 18.14 crore from Mohd Nasiruddin Ansari, popularly known as 'Baap of Chart', Rahul Rao Padamati and Golden Syndicate Ventures for carrying out unregistered investment advisory activities.

The recovery proceedings have been launched to recover amounts payable by the noticees - Ansari, Padamati and Golden Syndicate Ventures - pursuant to earlier directions issued by the regulator. According to Sebi's order, the total liability includes penalties, further interest, costs and other charges, taking the amount to a little over Rs 18.14 crore. Sebi had issued a demand notice in May this year, directing the noticees to clear the dues within 15 days.

However, the amount remained unpaid. Subsequently, the regulator initiated coercive recovery measures by issuing an attachment order in July. As part of the action, all demat and bank accounts, as well as mutual fund investments, held by the defaulters have been frozen. Separate directions were also issued to banks to restrict access to lockers, thereby preventing any movement or concealment of assets, the order said.

Meanwhile, in September, the Securities Appellate Tribunal (SAT) had directed Padamati to remit 50 per cent of the funds he received, amounting to Rs 1.2 crore, within four weeks. However, Padamati failed to comply with the directive.

In its latest order, Sebi noted that the amounts that could be realised through remittances from the bank accounts of the defaulters were not sufficient. Accordingly, the regulator prohibited the defaulters from disposing of, transferring, alienating or charging any of their immovable or movable properties. "...the defaulters are hereby prohibited from disposing, transferring, alienating, or charging all the immovable properties and movable properties held by the defaulters," Sebi said in the order.