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Difficult to recover dues are those that could not be recovered even after exhausting all modes of recovery.
The Securities and Exchange Board of India (Sebi) has classified 120 cases (companies) as untraceable out of 692 cases in the ‘difficult to recover’ category with dues to the tune of Rs 73,287 crore as of March 2023.
The number of untraceable companies rose from 94 in March 2022, Sebi said. These untraceable companies are believed to be vanishing companies which disappeared after raising funds from the public.
Further, there were 341 companies in the ‘defunct company’ category as of March 2023 as against 238 in the previous year, Sebi said in its Annual Report. There were 83 defaulters who are alive but without any attachable assets as against 49 cases in the previous year.
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There are 307 cases involving Rs 88,127 crore pending before various courts, tribunals and other fora related to matters where recovery certificates are drawn. Majority of these matters are sub-judice before the Securities Appellate Tribunal (SAT).
Difficult to recover dues are those that could not be recovered even after exhausting all modes of recovery. Segregation of such difficult to recover dues is purely an administrative act and this will not preclude recovery officers from recovering the amount so segregated as DTR as and when there is a change in any of its parameters.
Sebi is empowered to recover penalties imposed by the adjudicating officer.
Overall, the regulator has dues worth Rs 1.02 lakh crore that needs to be recovered from entities, including those that failed to pay the fine imposed on them, or were unable to pay fees due to it and did not comply with its direction to refund investors’ money, according to Sebi’s annual report.
Of Rs 1.02 lakh crore, Rs 63,206 crore, which is 62 per cent of the total amount, pertains to collective investment scheme and deemed public issues of PACL Ltd and Sahara Group company Sahara India Commercial Corporation Ltd.
Further, the regulator said parallel proceedings are pending before various courts and court-appointed committees in 77 cases involving Rs 70,482.62 crore, or 69 per cent of the total amount.
The markets watchdog took up 144 new cases, pertaining to flouting securities law, for investigation during 2022-23, which is way higher than 59 cases taken up in the preceding financial year. The cases were related to alleged violation of securities law, including market manipulation, price rigging and insider trading.
“During 2022-23, 144 cases pertaining to various violations of securities laws were taken up for investigation and 152 cases were completed,” Sebi said. Of these, 85 cases taken up for investigation were related to market insider trading, 54 for market manipulation and price rigging and the remaining five for violations of securities law. Sebi initiates investigation based on reference received from sources such as its integrated surveillance department, other operational departments and external government agencies.
During 2022-23, the regulator had initiated enforcement action in 67 cases, while it has disposed of 333 cases.
© The Indian Express (P) Ltd
First published on: 09-08-2023 at 04:46 IST
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