Sebi issues demand notice to Singh brothers in fund diversion case

Failure to pay the fines could lead to attachment and sale of properties

The Securities and Exchange Board of India (Sebi) has issued demand notices for recovering a total of Rs 42.85 crore from erstwhile promoters Malvinder Singh and Shivinder Singh, and four other entities in a matter related to Religare Enterprises.

Failure to comply within 15 days could lead to attachment of bank accounts and the sale of immovable and movable properties.

The recovery is for a case relating to alleged siphoning of Rs 2,315 crore from Religare Finvest (RFL), a subsidiary of Religare Enterprises, to benefit the promoters and connected entities.

The recent demand notice includes interest and recovery cost along with the initial penalty imposed on the duo.

The capital market regulator had, in an order dated July 28, 2022, ordered Malvinder Singh and Shivinder Singh to pay a penalty of Rs 10 crore each and barred them from accessing the capital market for three years. With inclusion of interest and recovery costs, they have now been asked to pay Rs 10.70 crore each.

Other defaulters, namely, Religare Corporate Services, ANR Securities Private Limited, RHC Holding Private Limited and Shivi Holdings Private Limited have to shell out Rs 5.35 crore each.