SEBI Orders Asset Attachment Against K. Vijaya Rama Raju over ₹10 Lakh Recovery Dues from Ranklin Solutions

SEBI Orders Asset Attachment Against K. Vijaya Rama Raju over ₹10 Lakh Recovery Dues from Ranklin Solutions​

The Securities and Exchange Board of India (SEBI) has taken decisive action against K. Vijaya Rama Raju, issuing a formal Notice of Attachment concerning his financial holdings. The order pertains to recovery dues related to Ranklin Solutions Limited and mandates the freezing of his bank accounts and securities portfolios.

This significant regulatory move signals SEBI's commitment to debt recovery processes within the market ecosystem. The attachment proceedings target both banking institutions and depository services, ensuring comprehensive collection of the outstanding amounts.

Breakdown of Recovery Dues​

The total amount sought by SEBI stands at ₹10,36,000/-. These dues originate from a Penalty imposed by the Adjudicating Officer in relation to Ranklin Solutions Ltd. The calculation covers three distinct components: penalty, interest, and recovery costs.

Details of the outstanding liabilities are as follows:

• Penalty levied by the Adjudicating Officer (vide order no. EAD-3/ORDER/JS/SP/3112-3119/2019-2020 dated 07/05/2019) amounts to ₹7,50,000/-.
• Interest accruing from May 2019 to June 2022 at a rate of 12% p.a., totaling ₹2,85,000/-.
• Recovery Cost, which stands at ₹1,000/-.

Attachment of Bank and Post Office Accounts​

A specific notice of attachment has been issued to all banks and post offices in India concerning K. Vijaya Rama Raju's accounts. This action is taken because the defaulter has not paid the required amount despite issuance of a Notice of Demand dated June 13, 2022.

Under the order, all bank or post office accounts held by the defaulter are to be attached immediately. This includes any accounts held singly or jointly with other individuals. The attachment is issued under Section 28A (1), 11(2) (ia) of SEBI Act, 1992.

Furthermore, it has been ordered that no debit can be made in the affected accounts until further orders from the Recovery Officer are received. However, any credits into these accounts may still be allowed.

Action Required for Financial Institutions​

The notice mandates immediate action and detailed reporting from all concerned banks and post offices within 15 days of receiving the order. These institutions must provide a comprehensive list of all accounts held by the defaulter.

The required documentation includes copies of account statements for the past one year, confirmation of the attachment process, and full details regarding any loan or advances taken against assets. The failure to respond in time will lead SEBI to presume that no such account exists.

Freezing of Demat and Mutual Fund Holdings​

Parallelly, a distinct notice of attachment has been directed towards depository services and mutual fund administrators. This proceeding covers the securities and instruments held by K. Vijaya Rama Raju in his Demat accounts and Mutual Fund folios.

The purpose of this measure is to prevent the defaulter from disposing of any assets that could be used to settle the outstanding debt. The order specifies that all such holdings must be attached with immediate effect.

As with banking institutions, it has been strictly ordered that no debit shall be made against these accounts or folios until further instructions are received from SEBI's Recovery Officer. The notice directs the involved entities to provide details of all accounts and folios within 15 days.