Pancard Clubs Case: Sebi To Attach Accounts To Recover Rs 7,000 Crore

New Delhi: Markets regulator Sebi has ordered attachment of bank and demat accounts of Pancard Clubs and its six directors to recover pending dues worth Rs 7,035 crore in a case related to illegal fund raising.

The watchdog has also ordered attachment of bank and demat accounts of 10 other subsidiary companies, noting that the firms are debtors of Pancard Clubs. The latest order comes after the company failed to comply with Sebi's direction in February this year ordering it to refund over Rs 7,000 crore to investors raised through illegal collective investment schemes (CIS).

The pending dues include the returns due to the investors, along with interest, charges, expenses and other costs.

"The defaulters are likely to conceal, remove or dispose of the whole or any of the movable assets namely money in the banks, securities in demat accounts, mutual fund investments etc, which are liable to be attached," Sebi Deputy General Manager and Recovery Officer Atanu Pan said in the order. The move comes after Sebi received various investor complaints stating non-refund of their investments.

Exercising its powers to recover penalties from defaulters, the Securities and Exchange Board of India (Sebi) has ordered attachment of bank, demat accounts and mutual fund folios of Pancard Clubs and its directors to recover dues worth Rs 7,035 crore.

In an attachment order, Sebi directed banks to attach all accounts including lockers held by the entities. It has directed depositories -- NSDL and CDSL -- to attach all demat accounts of the defaulters.

The watchdog has also asked for various details of the accounts held by the company and its six directors, including account statements.

The markets regulator has been given powers to attach properties and bank accounts, among other things, of persons and entities which have failed to comply with directions involving payment of penalties and other dues.

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