SEBI Initiates Massive Asset Attachment Against Defaulter in DU Digital Technologies Scrutiny: Banks, Demat Accounts Targeted

SEBI Initiates Massive Asset Attachment Against Defaulter in DU Digital Technologies Scrutiny: Banks, Demat Accounts Targeted​

The Securities and Exchange Board of India (SEBI) has taken stringent action against Usha Devi following allegations related to trading activities in the scrip of DU Digital Technologies Limited, now known as DU Digital Global Limited. SEBI has issued comprehensive notices ordering the attachment of various assets belonging to the defaulter across multiple financial institutions.

The regulatory move signifies a severe escalation in recovery proceedings. The notice orders all banks, post offices, and mutual funds in India to place a hold on the accounts of Usha Devi for the realization of dues. This action is part of Recovery Certificate No. 9185 of 2026.

Details of SEBI's Attachment Orders​

The attachment procedure targets all financial instruments held by Usha Devi. Notices were issued to principal officers of banks, post offices, and mutual fund administrators on July 22, 2026. The primary purpose is to prevent the defaulter from disposing of assets, thereby obstructing the recovery process.

All targeted accounts—including bank savings accounts, locker contents, Demat holdings, and Mutual Fund folios—are subject to an immediate attachment order. The notices explicitly direct institutions not to make any debit in these attached accounts regarding the total dues until further orders are received from SEBI's Recovery Officer. However, credits into the account may be permitted.

Breakdown of Financial Dues Against Defaulter​

The recovery process is initiated over a total outstanding amount of ₹8,49,000.00. The financial liability arises primarily from a penalty imposed on Usha Devi related to trading activities in DU Digital Technologies Limited.

Details of the dues include:

• Penalty: A penalty amounting to ₹8,00,000.00 was imposed by AO vide Order No QJA/MN/IVD/ID7 / 31947 / 2025-26 dated December 31, 2025.
• Interest: An interest amount of ₹48,000.00 has been calculated covering the period from January, 2026 to June, 2026 at a rate of 1% p.m.
• Recovery Cost: The remaining dues account for ₹1,000.00 related to recovery costs.

Scope of Regulatory Action Across Financial Institutions​

SEBI has issued separate and specific directives to ensure complete coverage of the defaulter's assets across different financial verticals. This comprehensive approach spans banking, postal services, and securities market instruments.

Directives Issued to Banks and Post Offices​

The notices served upon all banks and Head Postmasters detail the attachment of all accounts held by Usha Devi. This includes any personal or joint accounts, as well as lockers associated with the defaulter's name. The institutions are required to provide details on all such accounts within 15 days of receiving the notice.

Attachment of Securities and Mutual Funds​

A separate directive has been issued to M/s National Securities Depository Ltd. and M/s Central Depository Services (I) Ltd. for the attachment of Demat accounts and Mutual Fund folios. This ensures that financial securities held by Usha Devi are secured as part of the recovery process.

Compliance Mandates and Future Oversight​

The notices stipulate strict compliance mandates for all receiving institutions. Banks must provide account statements for the latest one year, along with confirmation of the attachment. Furthermore, banks must furnish complete details of any loan or advance accounts linked to the defaulter.

Both banking and depository institutions are directed to immediately notify SEBI if any new account or folio is opened by Usha Devi subsequent to the issuance of this notice. The Recovery Officer, Kirtikumar Jadhav, General Manager & Recovery Officer at SEBI, is overseeing these attachment proceedings.