Sebi orders attachment of 134 Saradha properties

KOLKATA/MUMBAI: The Securities and Exchange Board of India (Sebi) on Monday ordered attachment of 134 properties of Saradha Realty and its managing director Sudipta Sen to recover Rs 774 crore that was collected illegally from investors by the scam-tainted company.
However, Saradha property has triggered a turf war between Sebi and Enforcement Directorate (ED), which has been probing the case for the last two years and has claimed that most of the properties of the Saradha Group have already been attached.
In its order, Sebi said the defaulters failed to pay the amount and did not even respond to the recovery notices.In April 2013, Sebi had ordered Saradha to refund the money to investors within three months. Sebi had also barred the group from markets.
The properties that Sebi has asked to be attached include land parcels, buildings, flats, resorts, as also furniture, televisions, refrigerators, generators and computers along with all other 'movable assets' held by the two defaulters. Most of these assets are located in West Bengal, as per the attachment order. The Sebi also asked the two defaulters to provide full details of all their movable and immovable properties.
However, ED sources have questioned Sebi's attachment notice. "They (Sebi) asked for the list of properties attached so far and we have given them the details. How can they start attachment process once again when it has already been done by us," an ED sleuth said.
ED officials say that cases lodged under the Prevention of Money Laundering Act (PMLA) will have preference when it comes to property attachment. The Sebi order came three months after the ED ordered freezing of Saradha’s bank and demat accounts.
The ED has already issued six provisional attachment orders where properties worth Rs 190 crore (cost price) have been attached. The market value of the said properties is around Rs 500 crore. ED sources said the agency will issue another attachment order by next week. "If there is money laundering, then PMLA Act becomes the primary instrument. Although we have not seen the Sebi order, it has already created confusion among investors and registrar of properties," the ED official said.
Recovery officer and deputy general manager of Sebi (Kolkata), Manjesh Roy, said in his order on Monday that a demand notice was issued to Sudipta and Saradha Realty on June 4, 2015, but neither of them paid the amount.
Sebi apprehended in the notice that the defaulters in possession of the 134 properties might sell or transfer the properties to obstruct the recovery proceedings.