SEBI action against BJP minister spells trouble ahead of PM Modi's Solapur visit

SEBI also banned the company from the securities market for at least four years. 

Published: 05th January 2019 08:18 AM  |   Last Updated: 05th January 2019 08:18 AM   |  A+A-

SEBI  (File photo | Reuters)

Image used for representational purpose. (File photo | Reuters)

By Express News Service

MUMBAI: The Securities and Exchange Board of India (SEBI) on Friday ordered the attachment of bank and demat accounts and mutual fund folios of Solapur-based Lokmangal Agro Industries, a firm linked to Maharashtra minister Subhash Deshmukh, to recover dues of around Rs 74.82 crore. 

The action, which has come ahead of PM Narendra Modi’s Solapur visit next week, has created trouble for the minister and the saffron party, as the BJP was planning to blow its poll bugle from the textile town. 
In May last year, SEBI had directed the firm and its seven directors to refund Rs 74.82 crore which they had illegally raised from investors, along with an interest of 15 per cent per annum.

SEBI also banned the company from the securities market for at least four years. Friday’s action was necessitated due to non-compliance of the orders.Accounts of Smita Subhash Deshmukh, Vaijnath Nagappa Lature, Audumber Sandipan Deshmukh, Shahaji Gulchand Pawar, Gurrana Apparao Teli, Mahesh Satishchandra Deshmukh and Parag Suresh Patil were frozen on Friday.

“No debit shall be made in their accounts until further orders,” SEBI said in its order.This is likely to spell fresh trouble for Deshmukh, who has been facing flak from the Opposition, ever since his taking over as the Cooperatives Minister. 

On agenda
During his Solapur visit, Modi is scheduled to lay foundation stones for two major highway projects

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