Description

SEBI issues a Notice of Demand for Rs. 54,98,843 against Kirtibhai Chavda, Proprietor of Shreesons Enterprise (PAN: BWXPC9835P), under Recovery Certificate No. 9037 of 2026 in the matter of Real Capital Services, directing payment within 15 days.

Summary

SEBI’s Recovery Division II has issued a Notice of Demand under Recovery Certificate No. 9037 of 2026 against Kirtibhai Chavda, Proprietor of Shreesons Enterprise, Rajkot, Gujarat (PAN: BWXPC9835P). The notice demands payment of Rs. 54,98,843 (Rupees Fifty-Four Lakh Ninety-Eight Thousand Eight Hundred Forty-Three Only) within 15 days, arising from a refund order passed by the Quasi-Judicial Authority (QJA) in the matter of Real Capital Services.

Key Points

  • Recovery Certificate No. 9037 of 2026 issued under Section 28A of the SEBI Act, 1992 read with Section 222 of the Income Tax Act, 1961
  • Total amount due: Rs. 54,98,843, comprising principal refund amount of Rs. 48,22,669, interest of Rs. 6,75,174 (@ 1% per month from January 2025 to February 2026), and recovery cost of Rs. 1,000
  • The underlying order is QJA Order No. QJA/AA/WRO/WRO/31146/2024-26 dated 28.01.2025 in the matter of Real Capital Services
  • Payment must be made within 15 days via EFT/NEFT/RTGS to A/c No. SEBIRNCIS9037, Bank of India, IFS code BKID00VAN04, or via SEBI’s online payment portal
  • Failure to pay will trigger coercive recovery measures

Regulatory Changes

No new regulatory changes. This is an enforcement/recovery action under existing provisions of Section 28A of the SEBI Act, 1992, read with Sections 220–227, 228A, 229, and 232 of the Income Tax Act, 1961, and the Second Schedule thereto.

Compliance Requirements

  • Kirtibhai Chavda (Proprietor, Shreesons Enterprise) must pay Rs. 54,98,843 within 15 days of receipt of this notice
  • Payment confirmation must be sent to kapilsankhla@sebi.gov.in / pankajs@sebi.gov.in with case name, RC number, payee name, date, amount, transaction number, and bank details
  • The noticee is prohibited from mortgaging, charging, leasing, or otherwise dealing with any property without the Recovery Officer’s permission upon service of this notice
  • Any transfer of property or bank account monies to spouse, minor child, son’s wife, or son’s minor child without adequate consideration (on or after 28.01.2025) will be deemed the noticee’s property for recovery purposes

Important Dates

  • Underlying QJA Order: 28 January 2025
  • Notice of Demand issued: 20 February 2026
  • Payment deadline: Within 15 days of receipt of this notice (approximately by early March 2026)

Impact Assessment

This is a targeted individual enforcement action with no direct impact on the broader market or listed securities. The action is limited to recovery of dues from a single proprietorship (Shreesons Enterprise) in Rajkot, Gujarat, related to the Real Capital Services matter. If payment is not made within the stipulated period, SEBI may resort to attachment and sale of movable/immovable property, attachment of bank accounts, or arrest and detention of the proprietor.

Impact Justification

Individual enforcement/recovery action against a single proprietor for a specific refund order; no market-wide or systemic impact on listed securities or broader market participants.