Sebi bars Life Care Infratech from selling assets

New Delhi: Market regulator Sebi has prohibited Life Care Infratech and its six directors from selling various movable and immovable properties as part of its efforts to recover nearly Rs5 crore of dues.

After finding that the company and its directors illegally raised funds from the public, the watchdog had last year asked them to refund over Rs4.89 crore to investors, which they have failed to do. The entities have now been barred from disposing of four immovable properties in UP and Bihar as well as other movable assets, according to an order passed by Sebi’s Recovery Officer Mohammad Atif Alvi.

Besides, the company has been restrained from taking any benefit from the disposal, transfer, alienation or charge in respect of the prohibited properties. The regulator has already initiated the recovery process as part of which various bank accounts and mutual fund folios of the company have been attached.

In its latest order, the regulator said the defaulters “may dispose of or transfer or alienate the assets with a view to obstructing or delaying the recovery proceedings, which needs to be prevented immediately by attaching the said assets”. Sebi has also asked the entities to furnish complete details of all movable and immovable properties, among others, held by the company within two weeks.

Securities and Exchange Board of India ( SEBI )