SEBI Launches Asset Seizure Drive: Notice Issued to Banks and Depository Firms Against Defaulter in Venus Power Ventures Matter

SEBI Launches Asset Seizure Drive: Notice Issued to Banks and Depository Firms Against Defaulter in Venus Power Ventures Matter​

In a decisive regulatory action, the Securities and Exchange Board of India (SEBI) has issued formal Notices of Attachment targeting the assets of Srinivas Rao Marupudi. These notices were released on June 9, 2026, concerning non-compliance related to Venus Power Ventures Ltd. The action represents SEBI's exercise of powers under Section 28A (1) and 11(2)(ia) of the SEBI Act, 1992.

The Notices mandate immediate attachment across all relevant financial institutions, signaling strict enforcement against defaulters in corporate matters. This dual-pronged seizure action specifically targets both conventional banking services and specialized financial instruments such as Demat accounts and Mutual Funds.

Scope and Details of Dues Imposed Against Defaulter​

The attachment proceedings are based on a Recovery Certificate No. 4720 of 2022, which was initially drawn up on May 04, 2022. This certificate details the total dues owed by Srinivas Rao Marupudi to SEBI in relation to Venus Power Ventures (India) Limited.

The overall amount due is ₹ 3,22,000/- (Rupees Three Lakh Twenty-Two Thousand Only). This sum comprises several components related to default and recovery costs. The penalty imposed by the Adjudicating Officer amounted to ₹ 3,00,000/-. Additional interest calculated from November 2021 to May 2022 at a rate of 12% p.a. added ₹ 21,000/-, with recovery costs totaling ₹ 1,000/-.

SEBI Directs Immediate Attachment of All Financial Assets​

The Recovery Division Southern Regional Office has issued notices to all banks and post offices in India, as well as the Principal Officer/Chairman & Managing Director/CEO of all Mutual Funds operating in India. The orders stipulate that all accounts held by Srinivas Rao Marupudi are subject to immediate attachment.

This includes every account or locker, whether singular or joint, maintained with any bank or post office. Furthermore, all proceeds due or held for the defaulter were covered under this order. Similarly, Demat Accounts and Mutual Fund Folios belonging to the individual have been similarly attached.

Operational Directives and Restrictions on Bank Accounts​

The notices strictly define the operational limitations placed on the attached accounts. It has been ordered that no debit shall be made against the specified bank or post office accounts until further instructions are received from the Recovery Officer of SEBI. However, any credits into these accounts may still be permitted.

Banks are directed to provide complete details regarding all such accounts within 15 days. This required information includes a copy of the account statements for the last one year and full details of any loan or advances associated with the attached assets. Failure to respond will result in the presumption that the defaulter holds no such accounts.

Requirements for Depository and Mutual Fund Firms​

Specific instructions have also been issued to National Securities Depository Ltd. and Central Depository Services (I) Ltd., as well as all mutual fund operators. These entities are directed to confirm the attachment of all Demat Accounts and Mutual Fund Folios held by Srinivas Rao Marupudi.

The directives require these firms to maintain a clear record of all attached accounts. They must also immediately attach any new accounts or folios created for the individual following the issuance of this notice, providing full details thereof to SEBI's representative.