SEBI Unfreezes Gauranga Roy's Salary Account After Legal Review in Realcon Recovery Case
The Securities and Exchange Board of India (SEBI) has issued a critical order releasing the salary account of Gauranga Roy, amidst recovery proceedings initiated against Vasundhara Realcon Limited. The decision addresses the attachment of his Axis Bank account, determining that the freeze on the specific salary account must be lifted based on established legal provisions under the Income Tax Act and Civil Procedure Code.The Order, issued by the Recovery Officer at the SEBI Eastern Regional Office in Kolkata, directly pertains to Certificate No. RC3547 of 2021. This proceeding involves a demand for recovery of Rs. 2,23,67,200/- plus applicable interest and charges against Mr. Roy and other defaulters, following the initial attachment order issued on April 21, 2021.
SEBI Examines Salary Account Attachment Provisions
The legal basis for the salary attachment is rooted in Section 226 of the Income Tax Act, 1961, read with Section 60 (1)(i) of The Civil Procedure Code, 1908. These provisions govern how and when a defaulter's income, particularly salaries, can be seized for debt recovery.The statutes dictate that while property such as bank accounts is liable to attachment in execution of a decree, certain protective measures apply to the judgment debtor's salary. Specifically, the code allows exemption from attachment after continuous action has been taken over a defined period.
The 24-Month Rule Determines Account Status
A key finding highlighted in the SEBI order concerns the timing aspect of salary attachment. As per Section 60 (1) of the Civil Procedure Code, 1908, a specific provision exists stating that a salary account shall be exempted from attachment after the attachment has been maintained for a total period of twenty-four months.Since the bank account was initially attached via proceedings dated April 21, 2021, the specified duration of 24 months has elapsed. This finding established that the continued attachment of this particular salary account no. 916010014627672 is legally unwarranted under the current framework.
Salary Account Unfrozen: Order Issued to Compliance Officer
In view of these findings, the Recovery Officer has directed a compliance instruction regarding the Axis Bank account (No. 916010014627672). The attachment on this specific salary account is no longer enforceable.Mr. Roy's legal representative had formally requested SEBI to unfreeze the account via a letter dated May 15, 2026. This order directly addresses that request by mandating the lifting of the Debit Freeze on the designated salary account.
It is important to note, however, that while this specific instruction relates only to the release of the salary account, all other accounts attached pursuant to the initial notice of attachment shall continue under the existing recovery proceedings. The SEBI order emphasizes compliance with this directive for the named individual.
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