Sebi orders attachment of 381 properties of Samruddha Jeevan Foods

Markets regulator Sebi has ordered attachment of 381 properties of Samruddha Jeevan Foods India and its directors in a case related to illegal fund raising to recover dues worth over Rs 300 crore.

The properties being attached are agricultural land and office spaces located in Maharashtra, Odhisa, Bihar, Gujarat, Goa, Rajasthan and Karnataka, the Securities and Exchange Board of India (Sebi) said in an order Wednesday.

The regulator also prohibited entities concerned "from taking any benefit under such disposal, transfer, alienation or charge in respect of the properties, which stands attached in execution of recovery certificate".

The move comes after the markets regulator, in August this year, had attached the bank as well as demat accounts and mutual fund holdings of the company and its directors -- Mahesh Kisan Motewar, Vaishali Mahesh Motewar and, Rajendara Pandurang Bhandare.

Till now, an amount of a little over Rs 9.4 lakh has been recovered from the attachment of bank accounts.

The recovery proceedings were initiated against the entities for their failure to pay over Rs 301 crore which was due to investors.

Noting that the defaulters are in possession of as many as 391 properties, Sebi felt that they may dispose or alienate the assets with a view to obstruct or delay the recovery proceedings, which needs to be prevented immediately by attaching these assets.

Accordingly, the regulator has attached these properties.

The case involves collection of funds by the company from various investors under the scheme in violation of the provisions of CIS (Collective Investment Scheme) Regulations.