Mumbai: Markets regulator Securities Exchange Board of India (Sebi), in an order passed on Thursday, has attached financial assets of Maharashtras cooperation, marketing and textiles minister Subhash Deshmukhs wife Smita and other directors of Lokmangal Agro Industries.The regulator has attached all bank and demat accounts as well as mutual fund folios of Deshmukhs wife Smita and other directors of Lokmangal Agro Industries.
The order comes after Deshmukhs wife and other directors of company did not respond to a Sebi order in May last year, which had asked them to repay nearly Rs75 crore collected from investors through Lokmangal Agro Industries.
Deshmukh and his wife are directors of company.In May last year, regulator had ordered Lokmangal Industries to repay money collected from investors as they were taken in violation of Companies Act and Issue of Capital and Disclosure Requirements (ICDR) regulations.
In Thursdays order, Sebi noted that in spite of six months from date of order, company had failed to furnish a report on repayments.The order stated that attachment of financial assets was being done because as per conduct of defaulters, there is a likelihood that they may take out funds and securities from bank/demat accounts on receipt of aforesaid notice of demand.
Therefore, I am satisfied that in order to protect assets from any alienation, it is necessary to attach bank, demat and mutual fund accounts to prevent defaulters from removing/concealing same.
ET tried to get in touch with Deshmukh, but he didnt respond to our queries.
Deshmukh has attracted controversies ever since he was sworn in as a minister.
Earlier, BJP minister was in news as his bungalow was constructed illegally on a piece of land that was meant to house a fire brigade station.A co-operative society founded by minister and headed by his son Rohan was found to be involved in forging government documents.
The Lokmangal Multi-state Cooperative Society, founded by minister, had allegedly submitted forged and fabricated documents from Maharashtra Pollution Control Board (MPCB), industrial security and health department of Solapur, Food and Drug Administration, deputy divisional engineer and public works department.The cooperative credit society founded by Deshmukh had furnished forged documents to avail of a grant of Rs 24.81 crore from state agriculture department for a 10-metric tonne milk powder project and also for expansion of an existing dairy plant.While agriculture department issued grant, a subsequent investigation by department showed that most of government documents were fake and, therefore, state cancelled grant.Sebi alleged that Lokmangal Agro mobilised funds amounting to Rs 74.82 crore from 4,751 investors during FY10 to FY12 in violation of companies Act and Sebi regulations.The regulator alleged that Lokmangal Agro issued prospectus and advertisement for soliciting money from public for issue of securities.It was found that its directors would allocate shares to sugarcane farmers who used to provide sugarcane to their sugar mill.