SEBI Prohibits Asset Disposal as Multiple Entities Default on Massive Recovery Certificate Dues

SEBI Prohibits Asset Disposal as Multiple Entities Default on Massive Recovery Certificate Dues​

The Securities and Exchange Board of India (SEBI) has issued a strict Prohibitory Order against a group of entities and individuals, halting all property transactions until a substantial outstanding amount is recovered. The order targets failure to adhere to the terms laid out in Recovery Certificate No. 1851 of 2018.

The comprehensive prohibitory measure was released by the Recovery Officer at the Northern Regional Office, New Delhi, on June 12, 2026. This action falls under Rule 16 and 48 of the Second Schedule to the Income Tax Act, 1961, read with Section 28A of the SEBI Act, 1992.

Recovery Proceedings Against Defaulters​

Recovery proceedings have been formally initiated against a lengthy list of defaulters, including M/s Kassa Finvest Private Limited and several associated companies and individuals. The entire group has defaulted on payments totaling ₹ 98,26,50,507.60 (Rupees Ninety-Eight Crore Twenty-Six Lakh Fifty Thousand Five Hundred Seven and Sixty Paise Only).

The outstanding sum includes the principal amount due to investors, along with accrued interest, costs, charges, and all expenses incurred in connection with the recovery proceedings for Certificate No. 1851 of 2018. The Recovery Officer’s office confirmed that despite notices being issued since December 18, 2018, the specified dues remain unpaid by the defaulters.

Imposed Restrictions on Asset Disposal​

In light of the persistent default, SEBI has immediately prohibited all involved parties from making any adverse actions concerning their assets. The order explicitly bans the defaulters from disposing, transferring, alienating, or creating a charge in respect of specific properties that have been attached in execution of the Recovery Certificate.

This prohibitory action is designed to prevent the defaulters from obstructing or delaying the ongoing recovery process. All persons are further directed not to take any benefit under such disposal or transfer concerning the properties mentioned in the certificate.

Required Property Disclosure and Compliance​

The Prohibitory Order mandates that all involved parties furnish complete details of their movable and immovable assets. The required information must be presented in a prescribed format at Annexure-A and certified by the Board of Directors.

Within two weeks of receiving this order, defaulters are required to submit these asset details along with original title deeds for the properties listed in the certificate. This directive ensures full transparency regarding the wealth held by the defaulting parties.

Properties Under Scrutiny​

The order specifically lists several properties that are under review and subject to prohibition due to the recovery action. Among the immovable properties detailed are residences located at Rama Park Block-B, Uttam Nagar, New Delhi-110059 and another property in Sainik Nagar, Uttam Nagar, New Delhi-110059.

The defaulters must provide exhaustive details regarding all assets, including land extent, plot numbers, boundaries, and any existing encumbrance or charges, as stipulated by the recovery officer. These details are crucial steps toward resolving the long-standing default.