SEBI Issues Strict Remittance Order Against Gujarat Meditech Ltd over Outstanding Recovery Dues

SEBI Issues Strict Remittance Order Against Gujarat Meditech Ltd over Outstanding Recovery Dues​

SEBI Directs Financial Institutions to Recover Outstanding Amount from Gujarat Meditech Ltd​

The Securities and Exchange Board of India (SEBI) has issued a formal General Remittance Order directing all banks and mutual fund institutions in India regarding the recovery certificate pertaining to Gujarat Meditech Ltd. This directive, dated June 18, 2026, mandates the remittance of specific outstanding dues owed by the company as per SEBI’s Recovery Certificate No. 3517 of 2021.

The order addresses the financial obligations of Gujarat Meditech Ltd., identifying the company's principal PAN as AABCG6112D. It serves as a critical enforcement step, consolidating actions taken through specified attachment proceedings (Nos. 12708 and 12709 of 2024).

Current Financial Obligation of Gujarat Meditech Ltd​

SEBI confirmed that the defaulter has an outstanding due amount totaling ₹1,80,000 (Rupees One Lakh Eighty Thousand Only). This figure represents the current status as per the regulatory filings.

The order details that notice of demand related to this matter was originally sent on April 19, 2021. Furthermore, notices of attachment concerning Gujarat Meditech Ltd.’s bank accounts were issued to relevant financial institutions on August 28, 2024. These proceedings highlight the extended nature of the recovery process undertaken by SEBI.

Mandatory Remittance Procedure for Financial Institutions​

The order explicitly directs all targeted banks and mutual funds to remit the outstanding amount owed by Gujarat Meditech Ltd. This amount must be transferred forthwith to SEBI via EFT, NEFT, or RTGS to A/c No. SEBIRRDPEN3517 of ICICI Bank (IFSC Code-ICIC0000106).

Institutions are further required to intimate the remittance details by email to recoverywro@sebi.gov.in using a prescribed format, which includes crucial data points such as the Date of Payment and Transaction No. from the corresponding bank account. The adherence to this procedure is paramount for the successful closure of the Recovery Certificate.

Legal Basis Governing SEBI’s Enforcement Action​

This enforcement direction is issued by SEBI in exercise of powers vested under Section 28A and 28B of the SEBI Act, 1992. These actions are further underpinned by the Securities Laws (Amendment) Act, 2014.

The directive also draws upon sections 220 to 227, 228A, 229, and 232 of the Second and Third Schedules to the Income Tax Act, 1961 (43 of 1961), along with the relevant Certificate Proceedings Rules, 1962 of the Income Tax Rules. This multi-faceted legal grounding solidifies SEBI’s regulatory authority in this matter.

Compliance Requirements and Documentation​

In instances where a financial institution does not hold any accounts or folios belonging to Gujarat Meditech Ltd., they are explicitly advised that no communication regarding such non-existence is required to be sent to SEBI.

The compliance order serves as a formal instruction from the Recovery Officer of the Western Regional Office, Securities and Exchange Board of India. Both the defaulter, Gujarat Meditech Ltd., and other concerned parties in Ahmedabad were copied the official regulatory document for necessary action.