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Capital market regulator SEBI recovered ₹224.6 crore through FY2015-16 from defaulters as penalty money. This is significantly higher than the ₹19.2 crore that it recovered in 2014-15.
According to Section 28A of the SEBI Act, the regulator is empowered to recover money from those who fail to pay a penalty imposed by SEBI officers or fail to comply with any direction of the regulator to refund money to investors or if they fail to pay any fees that is due.
During 2015-16, according to SEBI’s annual report, the regulator issued 614 attachment notices against bank accounts/lockers, demat accounts and others. Recovery proceedings were completed in 80 cases.
Big money from PACL Much of this comes from the illegal chit funds run by PACL (Pearls Agrotech Corporation), which collected ₹45,000 crore from 5.5 crore investors in a Ponzi scheme. In its report, SEBI has disclosed that after the initiation of recovery proceedings against PACL and its promoters/directors in November, 2015, SEBI has recovered ₹211.60 crore in the case, which will be returned to investors.
In SEBI’s action against Sahara India Real Estate Corporation and Sahara India Housing Corporation, the regulator said it received 11,956 applications involving 36,415 deposit accounts and made refunds with respect to 8,734 applications involving 20,783 deposit accounts for an aggregate amount ₹55.72 crore.
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