The Securities and Exchange Board of India, on Friday, ordered attachment of over 50 bank accounts of West Bengal-based MPS Greenery Developers for recovery of Rs.1,520 crore, along with applicable returns, collected from investors through illegal collective investment schemes.
This is the first direct attachment order issued by SEBI in a case involving an unauthorised collective investment scheme, which has emerged as a major route for illegally raising public funds.
SEBI has taken action against a number of unauthorised collective investment scheme entities from West Bengal, including Saradha, Rose Valley and Sumangal group entities.
Passing the order, SEBI said MPS Greenery was ordered in December last to refund Rs.1,520 crore along with return to investors, but it failed to do so and, therefore, the regulator was now passing an attachment order for the recovery of this money.
SEBI has asked eight banks, including public and private sector entities, to attach at least 51 accounts held by MPS Greenery with them, as also other accounts that the defaulter entity might have with those banks. SEBI also ordered attachment of “all other accounts by whatever name called of the defaulter, either singly or jointly with any other persons.’’