SEBI Publishes List of 9 Untraceable Defaulters To Recover Penalties!
Moneylife Digital Team/IANS 28 December 2022

The Securities and Exchange Board of India (SEBI) has released a list of nine defaulters who have failed to pay up penalties imposed by the regulator. The list, published by SEBI, is different from the list of corporate bank defaulters. Several companies mentioned in the SEBI list have reportedly gone 'missing' and untraceable. All nine entities have their last known address at Mumbai, as per an advertisement published by SEBI in a newspaper. Only one company, ACI Infocom Ltd, is listed on BSE and, last month, had intimated a change in its registered address to BSE.

The matter came to light when SEBI's recovery officers attempted to serve the notices of demand on these defaulters against whom the recovery certificates had been drawn up.

Some of the defaulters, who have to cough up unspecified dues, have been missing for the past nearly two years, while others have been untraceable for the past two weeks from one or multiple addresses available on records. The reason for publishing the information is that SEBI has not been able to serve demand notices on these companies to recover penalties imposed on them.

MYNK1906 Industries India Ltd, formerly known as Meuse Kara & Sungrace Mafatlal Ltd, has three last known addresses, one at Vile Parle and two in south Mumbai. The company was incorporated as Suryamukhi Trading & Finance Ltd and changed its name to Bio Green Industries Ltd in January 2007. In March 2012, its name was again changed to Meuse Kara Sungrace  Mafatlal. Subsequently, in December 2013, its name was changed to MYNK1906 Industries.

Inducon India Ltd has two addresses, one each in south Mumbai and Andheri. SEBI's demand notice issued on 27 April 2021 remained unserved. In December 2017, the company was levied a penalty of Rs6 lakh for its failure to obtain SEBI Complaints Redress System (SCORES) authentication from the market regulator
Classic Press International Ltd has two addresses in Goregaon, a Mumbai suburb, as per SEBI records. However, the company could not be served a SEBI notice dated 17 June 2021. In December 2017, the company was also penalised by SEBI with a fine of Rs1 lakh for its failure to obtain SCORES authentication and resolve investor complaints. 
Three others that are 'missing' since 19 July 2022 from multiple addresses are: Goodearth Financial Services Ltd, from Vile Parle east; ACI Infocom Ltd, operating from three addresses in Kandivali and three in Nariman Point; and Tejoomals Industries Ltd, with its last known address from Santacruz in Mumbai.
Goodearth Financial Services also failed to redress investor complaints and obtain SCORES authentication. SEBI, on 19 July 2022, issued a recovery certificate to recover Rs1.57 lakh from the company.
In the case of ACI Infocom, SEBI found the company failed to redress two complaints from investors and also did not submit ATR on the SCORES platform. In March 2018, SEBI imposed a penalty of Rs50,000 on the company. In a regulatory filing on 26 November 2022, ACI Infomm says it has shifted its registered address from V Mall to Dimple Arcade in Thakur Complex in Kandivali, Mumbai.  
Tejoomals Industries, according to SEBI, failed to redress investor complaints and obtain SCORES authentication. On 19 July 2022, the market regulator issued a recovery certificate to recover Rs1.57 lakh from the company. 
SEBI's demand notice issued on 26 July 2022 remained unserved on Rajendra Mining Spares Co Ltd, whose last know addresses are from Andheri. Earlier in February 2018, the market regulator had levied a fine of Rs1 lakh on the company for its failure to obtain SCORES authentication.  
The recovery officer could not serve the demand notice issued on 29 September 2022 on Gloria Leasing Ltd. The company have one address in south Mumbai and the other at Karjat in Raigad. It also violated SEBI rules and regulations and failed to redress investor grievances, and did not obtain SCORES authentication. In July 2018, SEBI issued a recovery certificate to recover Rs4.38 lakh from Gloria Leasing
Notice issued on 6 December 2022 to recover Rs1.61 lakh could not be served on Dynavox Industries Ltd, functioning from two neighbouring locations in Worli, the advertisement issued by SEBI shows. 
Admitting to the 'untraceable defaulters', SEBI says it has not been able to serve the notice of demands on them at their last known address.
The SEBI has 'advised' these defaulters to contact the recovery officer Srishti Ambokar vide a letter or email by 12 January 2023. 
The market regulator also appealed to the general public that if anybody has any knowledge of the whereabouts of these defaulters, they can write or email the recovery officer at [email protected].
11 months ago
This is a tale of a total absence of a holistic approach to this continuing problem of fly-by-night operators in this field, along with the lack of any semblance of coordination between the SEBI and the Income Tax authorities and also the suggestively irresponsible amendments made in the Income Tax Act in the last few decades, thereby eroding the importance of the Tax authorities inter alia in having a tab on the dubious players in this field. What is strange s that SEBI should fail to learn from the past experiences.

One of the pernicious amendments made to the Income Tax Act was to do away with the provision of requirement of obtaining an Income Tax Clearance Certificate for various purposes, including for obtaining loans, etc. While it was imperative to link it with the process of capital issues, the then govt thought it necessary (for political purposes) to remove the entire process of obtaining tax clearance certificates, ostensibly on the grounds of the widespread corruption in this area.
This apart, filing of ITRs is now mandatory for all corporate bodies. The fact that these missing operators are not traceable could have been verified from the tax authorities who could have been of help in tracing these professional crooks inter alia through their Auditors whose signed audit reports must invariably be available with the tax department.

From a reading of this story it would appear that all this happened as per a scripted plan for the authorities to start action after the horses flee the stable!

This menace needs a coordinated and holistic approach by a band of impeccably incorruptible people--unlike the high profile ICICI actors now in the news.
11 months ago
SEBI may approach local Police to trace the companies. CVC of SEBI may also make investigation of the defaulting companies. The promoter of these companies may be disclosed to the company in press which might help to trace the companies.
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