Markets regulator Sebi on March 24 ordered attachment of bank accounts as well as share and mutual fund holdings of Rana Kapoor, former MD and CEO of Yes Bank, to recover dues of over Rs 1 crore. The decision has been taken after Kapoor failed to pay the fine imposed on him.
Sebi, in September 2020, had levied a fine of Rs 1 crore on Kapoor for not making disclosures regarding a transaction of Morgan Credit, which was an unlisted promoter entity of Yes Bank.
By not disclosing about the transaction to Yes Bank's board of directors, Kapoor created an opaque layer between him and stakeholders and violated the provision of the LODR (Listing Obligations and Dislcosure Requirements) Regulation, Sebi had said in the order.
Further, the Securities and Exchange Board of India (Sebi) issued a demand notice to Kapoor in February this year, although he did not pay any dues. The pending dues, totalling Rs 1.04 crore, include an initial fine of Rs 1 crore and an interest of Rs 4.56 lakh and a recovery cost of Rs 1,000, the attachment notice showed on Wednesday.
In the notice, Sebi has asked banks, depositories and mutual funds not to allow any debit from the accounts of Kapoor. However, credits have been permitted. Further, the regulator has directed the banks to attach all accounts, including lockers, held by the defaulter.
"Whereas no amount has been paid by the defaulter (Kapoor). "There is sufficient reason to believe that the defaulter may dispose of the amounts/ proceeds in the banks accounts held with your bank and realisation of amount due under the certificate would in consequence be delayed or obstructed," Sebi said.
In a notice to all banks in the country, the regulator ordered to "attach with immediate effect…all accounts by whatever name, including lockers of the defaulter, held either singly or jointly with any other person, in your bank".
The regulator has also asked banks, depositories and mutual funds to provide details of all accounts held by Kapoor, including copy of account statements for the past one year. It has also sought complete information of all loan accounts and advances.