Description

SEBI issues recovery certificate demanding Rs. 52.51 lakhs (penalty plus interest) from four individuals jointly and severally for violations in Royal Twinkle Star Club Private Limited investigation, with 15-day payment deadline.

Summary

SEBI has issued Recovery Certificate No. 8927 of 2025 dated October 16, 2025, demanding payment of Rs. 52,51,000 from Mr. Omprakash Basantlal Goenka, Mr. Prakash Ganpat Utekar, Mr. Venkatraman Natrajan, and Mr. Narayan Shivram Kotnis. The demand comprises a penalty of Rs. 50,00,000 imposed jointly and severally through Adjudication Order No. Order/AK/DS/2025-26/31472-31476 dated June 18, 2025, plus Rs. 2,50,000 in interest (at 1% per month from June to October 2025), and Rs. 1,000 in recovery costs. The matter relates to an investigation concerning Royal Twinkle Star Club Private Limited.

Key Points

  • Four individuals held jointly and severally liable for Rs. 50 lakh penalty
  • Total demand including interest and costs: Rs. 52,51,000
  • Payment deadline: 15 days from receipt of notice
  • Interest calculated at 1% per month from June 2025 to October 2025
  • Multiple addresses provided for each individual, primarily in Mumbai area
  • Original adjudication order dated June 18, 2025

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action under existing SEBI Act provisions.

Compliance Requirements

Payment Options:

  • Direct credit through EFT/NEFT/RTGS to ICICI Bank Account No. SEBIRRDPEN8927 (IFSC: ICIC0000106)
  • Online payment via SEBI’s Recovery Payment module at https://siportal.sebi.gov.in
  • Payment link available on SEBI Website → Enforcement → Recovery Proceedings → Pay Now

Consequences of Non-Payment:

SEBI may initiate recovery through:

  • Attachment and sale of movable property
  • Attachment of bank accounts
  • Attachment and sale of immovable property
  • Arrest and detention in prison
  • Appointment of receiver for property management

Property Transfer Restrictions:

Per Section 28A Explanation 1 of SEBI Act, any direct or indirect transfer of property or money to spouse, minor child, son’s wife, or son’s minor child without adequate consideration on or after June 18, 2025, shall be deemed as the defaulter’s property for recovery purposes.

Important Dates

  • June 18, 2025: Original adjudication order imposing penalty
  • October 16, 2025: Recovery certificate issued
  • Payment Deadline: 15 days from receipt of this notice
  • Interest Period: June 2025 to October 2025

Impact Assessment

Individual Impact: High - The four named individuals face significant financial liability with potential severe consequences including property attachment and arrest if payment is not made within the stipulated timeframe.

Market Impact: Negligible - This enforcement action concerns a private limited company (Royal Twinkle Star Club Private Limited) and specific individuals. It does not affect listed securities or broader market participants.

Precedent Value: The notice demonstrates SEBI’s continued use of recovery certificate mechanism under Section 28A of SEBI Act read with Income Tax Act provisions to enforce adjudication orders, including joint and several liability for multiple violators.

Impact Justification

High severity for named individuals facing recovery proceedings, but low market impact as this concerns specific enforcement action against four individuals in a private limited company matter with no broader regulatory implications.