Sebi Bars Pancard Clubs From Selling Assets In Rs. 7,000 Crore Case


New Delhi: After attaching bank and demat accounts of Pancard Clubs and its directors, regulator Sebi on Wednesday prohibited the entities from disposing of 34 immovable properties along with various other movable assets to recover dues of over Rs. 7,000 crore.

The latest direction came after Sebi found that the funds available in the bank accounts and securities available in the demat account of the defaulters were not sufficient to recover the dues.

The attachment order was initiated after the company failed to comply with Sebi’s direction in February this year to refund over Rs. 7,000 crore to investors raised through illegal collective investment schemes (CIS).
In its latest order, the Securities and Exchange Board of India (Sebi) said, “It is felt that the defaulters may dispose of or transfer or alienate the assets with a view to obstruct or delay the recovery proceedings, which need to be prevented immediately.

Accordingly, the watchdog has prohibited the firm from selling 27 immovable properties and its one director Sudhir Shankar Moravekar from disposing seven properties held by him.

The properties include land parcels, resorts, buildings and office spaces, among others, across the country. Further, the entities have been barred from disposing, transferring, alienating or creating a charge in respect of the properties attached.

Sebi has also asked the entities to furnish complete details of all movable and immovable properties, among others, held by them within two weeks.

Exercising its powers to recover penalties from defaulters, Sebi on December 2 ordered attachment of bank, demat accounts and mutual fund folios of Pancard Clubs and its directors to recover dues of Rs. 7,035 crore.