Mumbai: The Securities and Exchange Board of India (SEBI) has ordered the attachment of bank accounts, shares, and mutual fund holdings of Reliance Big Entertainment, now known as Rbep Entertainment Pvt Ltd, to recover dues of ₹26 crore. The regulator’s action follows the company’s failure to pay the fine imposed in a case related to the illegal diversion of funds involving Reliance Home Finance Ltd (RHFL).
SEBI’s Initial Notice
On November 14, SEBI had issued a notice to Reliance Big Entertainment directing the entity to pay the outstanding dues within 15 days. However, the company failed to comply, prompting SEBI to initiate recovery proceedings. The dues include ₹26 crore, consisting of penalties, interest, and recovery costs.
Attachment Order Issued
As part of its recovery measures, SEBI issued an attachment notice, instructing all banks, depositories, and mutual fund houses to restrict any debit transactions from the company’s accounts. SEBI stated in the notice that it had “sufficient reason to believe” the company might attempt to dispose of its assets, which could delay or obstruct the recovery process.
The attachment includes the company’s bank accounts, demat accounts, and mutual fund folios. SEBI’s order ensures no funds or securities can be moved from these accounts until the dues are cleared.
Action Against Other Entities
The case is part of a larger investigation into fund diversion from RHFL. Last week, SEBI issued attachment notices to three other entities—Adhar Project Management and Consultancy Pvt Ltd, Indian Agri Service Pvt Ltd, and Mohanbir Hi-Tech Build Pvt Ltd—to recover a total of ₹78 crore. These entities are also linked to the illegal diversion of funds from RHFL.
Anil Ambani and Others Barred
In August, SEBI took stringent action against industrialist Anil Ambani and 24 other entities, including former key officials of RHFL, for their involvement in the fund diversion case. SEBI barred Ambani from accessing the securities market for five years and imposed a fine of ₹25 crore. During this period, Ambani is also prohibited from serving as a director or Key Managerial Personnel (KMP) in any listed company or SEBI-registered intermediary.
Penalties on RHFL
Reliance Home Finance Ltd (RHFL) itself faced regulatory action. SEBI barred the company from the securities market for six months and imposed a fine of ₹6 lakh. The actions reflect SEBI’s ongoing efforts to address financial misconduct and recover misused funds.
Conclusion
SEBI’s decisive actions underscore its commitment to ensuring accountability in the securities market. By attaching the accounts of Reliance Big Entertainment and related entities, the regulator aims to recover the misused funds and prevent further obstructions in the recovery process. The crackdown serves as a stern warning to entities engaging in financial irregularities, highlighting SEBI’s vigilance in safeguarding market integrity.