SEBI Mandates Urgent Remittance to Recover Over ₹3.95 Crore from Defaulters in Continental Seeds Case

SEBI Mandates Urgent Remittance to Recover Over ₹3.95 Crore from Defaulters in Continental Seeds Case​

SEBI Issues Formal Remittance Advice Against Three Proprietors over Outstanding Dues​

The Securities and Exchange Board of India (SEBI) has issued a formal Remittance Advice targeting three proprietors in the matter concerning Continental Seeds and Chemicals Limited. The action is directed against Mohd. Idrees, proprietor of Tirupati Enterprises, Momin Jahan, proprietor of Jahan Enterprises, and Mujaffar Khan, proprietor of Shiv Enterprises, among others.

The notice mandates that banks and mutual funds holding accounts of these defaulters must remit the outstanding amount directly to SEBI. This directive is part of proceedings stemming from Recovery Certificate No. 8858 of 2025.

Escalating Liability in Debt Recovery Proceedings​

The original Recovery Officer, as per a proceeding dated August 13, 2025, had directed the attachment of bank accounts belonging to Mohd. Idrees and two other proprietors. This action was initiated against a total due amount amounting to ₹3,72,76,530/- (Rupees Three Crore Seventy-Two Lakhs Seventy-Six Thousand Five Hundred Thirty Only), along with accrued interest, costs, charges, and expenses.

A Notice of Demand dated August 13, 2025, was previously sent to the defaulters. A subsequent Notice of Attachment of Bank Account and Mutual Funds dated May 6, 2026, was issued to concerned financial institutions.

Updated Dues Amount Reaches ₹3.95 Crore​

As per the latest official documentation, the current liability amount that needs to be recovered from the defaulters is significantly higher than the original attachment notice. SEBI confirms that the outstanding dues, as of the date of issuance, total ₹3,95,02,068.40/- (Rupees Three Crore Ninety-Five Lakh Two Thousand Sixty-Eight and Forty Paise Only).

The Remittance Advice explicitly directs all Post Offices, Banks, and Mutual Funds in India to action this payment forthwith. These institutions must remit the required amount lying in the defaulters' accounts directly to SEBI via EFT/NEFT/RTGS.

Legal Basis and Mandate for Financial Institutions​

This direction is issued by SEBI utilizing powers conferred under Section 28A of the SEBI Act, 1992. This framework was amended by the Securities Laws (Amendment) Act, 2014. The ruling also references relevant sections including 220 to 227, 228A, 229, and 232 of the SEBI Act.

The official communication clearly outlines a structured process for payment, requiring specific information regarding the transaction, payee details, date of payment, and amount paid. This transparency is mandated to ensure that credits are accurately accounted towards satisfying the recovery certificate dues.

Institutional Response Required from Financial Sector​

The Principal Officer/Chairman & Managing Director / CEO Head Post Master and all Banks and Mutual Funds in India are required to adhere strictly to the directive. The designated beneficiary account details for SEBI have been provided, including A/c No. SEBIRRDDSG8858 of Bank of India.

Failure by financial institutions to process the credit as per the mandated format will result in the credits not being accounted towards the dues, as noted in the official guidelines appended to the Remittance Advice document issued on June 12, 2026.