Sebi attaches assets worth Rs 2.5 cr of 15 entities in Pyramid Saimira case

Capital market regulator Sebi has ordered attachment of bank and demat security accounts of 15 entities, including former top executive of Pyramid Saimira, to recover dues worth about Rs 2.50 crore.

Pyramid Saimira Theatre Ltd’s (PSTL) former chief financial officer R Shivagurunathan alone owes more than Rs 1.75 crore including the penalty amount to Securities and Exchange Board of India.

That apart, in separate cases, Sebi has to recover Rs 71.5 lakh from 14 other entities which have defaulted on payment of dues including fines imposed on them for violation of securities market norms.

As for PSTL, in 2011, Rs 1.25 crore penalty was imposed by Sebi on Shivagurunathan for indulging in fraudulent and unfair trade practices. As he had failed to pay the penalty, along with interest and other costs, it amounts to over Rs 1.75 crore.

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Consequently, Sebi has initiated recovery proceedings against him and has ordered attachment all of his bank accounts as well as dematerialised securities accounts.

The case relates to PSTL’s involvement in irregularities in its books of accounts and showing inflated profits and revenues in financial statements for 2007-08.

Separately, attachment orders have been issued against other entities include Sunil Mehta (Rs 14.29 lakh), Bhavesh Jain and Rakesh Jain who together are required to pay an amount of Rs 12 lakh, Hemlata Ramesh Hankare (Rs 13.31 lakh), Rajnish B Jain (Rs 7.42 lakh) and PUG Stock Brokers (Rs 5.37
lakh).

The other entities are: Finquest Securities (Rs 5.37 lakh), Bhavesh Kothari (Rs 3.14 lakh), Sunil D Agarwal (Rs 2.57 lakh), Piyush M Kanungo (Rs 2.59 lakh), Hitesh Mahendra Jain (Rs 2.10 lakh), Jignesh Shah (Rs 1.50 lakh), Star Corporation (Rs 1.12 lakh) and Surlux Health Centres (Rs 57,148).

In similarly-worded attachment notices dated December 5, Sebi has informed banks and depositories that there was “sufficient reason” to believe that the defaulters may dispose of the amounts or securities held in the accounts.

The regulator has also asked banks to attach the lockers held by the entities as well as “all other amount/proceeds due or may become due to the defaulters or any other money held or may subsequently hold for or on account of defaulter”.

It has further ordered the banks and depositories that with immediate effect no debit would be made in these accounts until further directions from the market regulator.

However, the credits, if any, into the account maybe allowed, Sebi said.

The watchdog has also asked for various details of the accounts held by the entities including account statements.

PTI