NEW DELHI: Capital market regulator SEBI on Wednesday ordered the releasing of bank accounts, lockers, demat accounts, and mutual fund folios of former Yes Bank MD and CEO Rana Kapoor after the latter made a payment of Rs 50 lakh against a recovery order of Rs 1 crore in compliance with the apex court’s interim order.
The regulator, in March, had attached bank accounts, share and mutual fund holdings of Kapoor to recover dues of Rs 1.04 crore after he failed to pay the fine imposed on him. The pending dues included an initial fine of Rs 1 crore and an interest of Rs 4.56 lakh and a recovery cost of Rs 1,000.
Sebi, in September 2020, had levied the fine on Kapoor for not making disclosures regarding a transaction of Morgan Credit, which was an unlisted promoter entity of Yes Bank. However, the release order comes after the Supreme Court, earlier this month, granted a conditional stay on the order by the Securities Appellate Tribunal (SAT) which had upheld a penalty of Rs 1 crore on Kapoor.
SAT had accepted SEBI’s contention in imposing the maximum penalty as it found the offence of a serious nature since Kapoor at that time was serving as the MD and CEO of the company. Kapoor’s appeal in the apex court has claimed that the imposed penalty was disproportionate as it wasn’t commensurate with the offence being alleged. The appeal questions how a provision containing a principle of interpretation became a charging provision.