Sebi issues demand notices to 7 entities in Religare Enterprises case

economictimes.indiatimes.com:

Sebi has issued notices to seven entities asking them to pay Rs 4.3 crore within 15 days in a case concerning diversion of funds of Religare Finvest, an arm of Religare Enterprises. In addition, the regulator warned of attachment of assets and accounts if they fail to make the payment within the stipulated time. The seven entities that received notices are — Torus Buildcon, Artifice Properties, Rosestar Marketing, Oscar Investments, Ad Advertising, Zolton Properties, and Saubhagya Buildcon.

The demand notices came after the entities failed to pay the fine imposed on them by the Securities and Exchange Board of India (Sebi) in October 2022. In seven notices issued on Monday, Sebi directed them to pay Rs 4.3 crore, which includes interest and recovery cost, within 15 days. In the event of non-payment of dues, the regulator will recover the amount by attaching and selling their moveable and immovable properties.

Besides, the entities will face attachment of their bank accounts. Also, the regulator takes the route of arrest and detention in prison to recover the amount. In October 2022, Sebi imposed penalties totalling Rs 21 crore on 52 entities, including these seven entities, for huge diversion and misutilisation of funds of Religare Finvest.