In order to recoup around Rs69.9 lakh in unpaid debts, market watchdog Securities and Exchange Board of India (SEBI) has ordered the attachment of Venugopal Dhoot’s bank and demat accounts as well as those of Videocon Group promoter Electroparts (India) Pvt Ltd.
Electroparts (India) and its CEO, Mr Dhoot, received a notification from SEBI on September 30, 2024, asking for payment in connection with insider trading in Videocon Industries’ stock.
SEBI issued three different notices for the attachment of Mr. Dhoot’s and Electroparts’ (India) bank and demat accounts after they failed to pay the outstanding balance.
According to SEBI’s separate orders, there are ample grounds to suspect that the defaulters may sell the securities and bank accounts in the mutual fund folios or demat accounts, which would delay or impede the realization of the amount owed under the certificate.
The total amount owed to Mr Dhoot, as per SEBI’s order, is Rs34.26 lakh, with an interest of Rs9.25 lakh (at a rate of 1% per month) starting in September 2021.
According to SEBI warnings, Electroparts (India) owes Rs35.64 lakh in unpaid debts, plus interest of Rs1.02 lakh (at 1% monthly) from September 2021.
Two complaints were filed with SEBI, claiming that between April 3 and September 29, 2017, the price of Videocon Industries’ stock fell. Following the investigation, the market regulator gave the three show-cause warnings and the chance to appear in person for a hearing. However, Mr. Dhoot, Electroparts, and Videocon Reality did not respond.
On March 1, 2017, Dena Bank designated the Videocon loan account, which it had approved and disbursed, as a non-performing asset (NPA). During a press conference on March 9, 2017, Dena Bank said that Videocon Industries’ Rs520 crore loan account had been designated as non-performing assets (NPA). Dena Bank representatives had visited Mr. Dhoot at his workplace and asked him to settle the bank’s debts and settle the account. The period of undisclosed price-sensitive information (UPSI) was defined by SEBI as the period from March 1 to March 9, 2017.
Mr Dhoot owned 7.26 per cent of Electroparts. Nonetheless, he owned about 89% of the company’s shares along with his close family members. Electroparts transferred Videocon Industries shares during the UPSI period with Mr Dhoot’s approval.
In addition, he owned 10% of Videocon Reality. In exchange for the financial aid that Electroparts had received, the business had pledged shares of Videocon Industries. In a similar vein, SEBI claims that Electroparts had pledged or transferred its Videocon Industries shares to other organizations off-market in exchange for financial support provided by Videocon Reality, indicating that the two promoter firms were cooperating.
