Capital markets regulator Sebi has ordered the attachment of bank accounts as well as share and mutual fund holdings of an individual to recover over Rs 22 lakh in the matter of RTS Corporation.
The recovery proceedings against Mukesh G Konde for Rs 22.61 lakh, includes further interest, all costs, charges and expenses, Sebi said in an attachment order issued on Tuesday.
In its notice, Sebi asked all banks, depositories and mutual funds not to allow any debit from accounts of Konde. 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 defaulter may 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.
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 June 2016, the regulator levied a fine of Rs 90 lakh on Konde and eight other entities in a matter pertaining to non-genuine transactions in RTS Power Corporation's scrip.
It was found that three individuals had bought shares of the company on February 11, 2009, and failed to fulfill their respective pay-in obligations.
Besides, certain other individuals had entered into the sham transactions with the defaulting clients who were related to them and aided the defaulting clients in prejudicing the integrity of the securities market.
One of the defaulting clients was Mukesh G Konde.
Meanwhile, in another attachment order, the regulator has ordered the bank and demat accounts of Edelweiss Estates Pvt Ltd to recover over Rs 5 lakh in the matter of GDR issue of six companies.
The recovery proceedings have been initiated against Edelweiss Estates Pvt Ltd (now known as Edelweiss Research Pvt Ltd) after it failed to pay the fine imposed by the Securities and Exchange Board of India (Sebi) in June 2021.
The pending dues of Rs 5.66 lakh comprise the initial penalty amount, interest and recovery cost.