Amit Sinha, commonly known as Sethji, has been accused of certain offenses under the SEBI Act, 1992. SEBI directed him to refund the money he unlawfully gained from the stock market and imposed a penalty. However, Amit h

Recovery of amounts (Section 28A of SEBI Act, 1992) Section 28A(1) states that if a person fails to pay the penalty imposed under SEBI Act, 1992 or fails to comply with any direction of the SEBI for refund of monies or fails to comply with a direction of disgorgement order issued under section 11B or fails to pay any fees due to the SEBI, the Recovery Officer may draw up under his signature a statement in the specified form specifying the amount due from the person and shall proceed to recover from such person the amount specified in the certificates by one or more of the following modes, namely: a. attachment and sale of the person's movable property; b. attachment of the person's bank accounts; c. attachment and sale of the person's immovable property; d. arrest of the person and his detention in prison e. appointing a receiver for the management of the person's movable and immovable properties and for this purpose, the provisions of sections 220 to 227, 228A, 229, 232, the Second and Third Schedules to the Income-tax Act, 1961 and the Income-tax (Certificate Proceedings) Rules, 1962, as in force from time to time, in so far as may be, apply with necessary modifications as if the said provisions and the rules made thereunder were the provisions of this Act and referred to the amount due under this Act instead of to income-tax under the Income-tax Act, 1961. Further the Explanations to Sec 28A(1) provides: 1. For the purposes of this sub-section, the person's movable or immovable property or monies held in bank accounts shall include any property or monies held in bank accounts which has been transferred directly or indirectly on or after the date when the amount specified in certificate had become due, by the person to his spouse or minor child or son's wife or son's minor child, otherwise than for adequate consideration, and which is held by, or stands in the name of, any of the persons aforesaid; and so far as the movable or immovable property or monies held in bank accounts so transferred to his minor child or his son's minor child is concerned, it shall, even after the date of attainment of majority by such minor child or son's minor child, as the case may be, continue to be included in the person's movable or immovable property or monies held in bank accounts for recovering any amount due from the person under this Act. 2. Any reference under the provisions of the Second and Third Schedules to the Income-tax Act, 1961 and the Income-tax (Certificate Proceedings) Rules, 1962 to the assessee shall be construed as a reference to the person specified in the certificate. 3. Any reference to appeal in Chapter XVIID and the Second Schedule to the Income-tax Act, 1961, shall be construed as a reference to appeal before the Securities Appellate Tribunal under section 15T of this Act. 4. The interest referred to in section 220 of the Income-tax Act, 1961 shall commence from the date the amount became payable by the person. Further as per Sec 28A(2) the Recovery Officer shall be empowered to seek the assistance of the local district administration while exercising the powers under sub-section (1). Sec 28A (3) provides that notwithstanding anything contained in any other law for the time being in force, the recovery of amounts by a Recovery Officer under sub-section (1), pursuant to non-compliance with any direction issued by the Board under section 11B, shall have precedence over any other claim against such person. Accordingly, SEBI can undertake above measures to recover outstanding amount, whether as a refund or a penalty, from Amit Sinha, commonly known as Sethji.