SEBI Unleashes Financial Enforcement: Bank and Investment Accounts Attached as Defaulter Fails to Repay Rs 4.2 Lakhs Dues
The Securities and Exchange Board of India (SEBI) has taken decisive regulatory action, issuing a Notice of Attachment against Anitha Yarlagadda regarding outstanding dues owed to Venus Power Ventures (India) Limited. The notice pertains to the attachment of bank accounts, demat holdings, and mutual fund folios held by the defaulter.The move signals a stringent application of SEBI’s recovery powers, aimed at securing the repayment of substantial dues accumulated over an extended period. This enforcement action is being carried out through the Recovery Division Southern Regional Office.
SEBI Orders Immediate Attachment of Bank Accounts
A formal Notice of Attachment (Proceeding No.15422 of 2026) has been issued to all banks and post offices in India. The order mandates the immediate attachment of all accounts, including lockers, held by Anitha Yarlagadda, whether singly or jointly.The defaulter is also restricted from disposing of any amounts or proceeds due to them in relation to these accounts. SEBI’s directive ensures that the realization of funds due under the recovery certificate will not be delayed or obstructed.
Total Dues Detailing Penalty and Interest
The total amount sought for recovery amounts to Rs 4,22,304/- (Rupees Four Lakh Twenty-Two Thousand Three Hundred and Four Only). This sum is derived from a Recovery Certificate issued on April 20, 2022.The liability breakdown details the severe penalty imposed by the Adjudicating Officer. The original penalty amounted to Rs 4,00,000/- as per an order dated 09/11/2021. Additionally, interest at a rate of 12% p.a. was charged from 09/11/2021 to 20/04/2022, totaling Rs 21,304/-. The recovery cost accounts for the remaining Rs 1,000/-.
Restriction on Financial Assets and Compliance Directives
In parallel to the bank account attachment, a separate notice was issued to National Securities Depository Ltd. and Central Depository Services (I) Ltd. This action targets all Demat Accounts and Mutual Fund Folios belonging to Anitha Yarlagadda.The order explicitly states that no debit shall be made against these accounts or folios until further instructions are received from the Recovery Officer of SEBI. However, any credits into these financial instruments may still be processed.
Directions Issued to Financial Institutions
Financial institutions serving the defaulter have been given specific instructions. Banks must provide detailed information regarding all accounts and lockers held by Anitha Yarlagadda within 15 days. They are also required to confirm the attachment of the said accounts.Similarly, depositories and mutual funds must detail all attached accounts or folios. These institutions are instructed to immediately attach any new accounts or folios created for the defaulter post the issuance of this notice. The action was exercised under powers conferred by Section 28A (1) and 11(2)(ia) of the SEBI Act, 1992.
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