Description

SEBI issued a Notice of Demand under Section 28A of the SEBI Act for recovery of Rs. 1,15,000/- from Kirtibhai Chavda (Proprietor, Shreesons Enterprise) in connection with a penalty imposed in the matter of Real Capital Services.

Summary

SEBI’s Recovery and Refund Department (Recovery Division II) issued Recovery Certificate No. 9035 of 2026 and a Notice of Demand under Rule 2 of the Second Schedule to the Income-Tax Act, 1961, read with Section 28A of the SEBI Act, 1992, against Kirtibhai Chavda, Proprietor of Shreesons Enterprise (PAN: BWXPC9835P), for non-payment of a penalty imposed in the matter of Real Capital Services. The total amount due is Rs. 1,15,000/-.

Key Points

  • Recovery Certificate No. 9035 of 2026 issued against Kirtibhai Chavda (Proprietor, Shreesons Enterprise), S/o Gunvantbhai Virjibhai Chavda, Rajkot, Gujarat – 360002.
  • Underlying penalty of Rs. 1,00,000/- imposed vide Order No. QJA/AA/WRO/WRO/31146/2024-26 dated 28.01.2025 in the matter of Real Capital Services.
  • Accrued interest of Rs. 14,000/- (January 2025 to February 2026 @ 1% per month).
  • Recovery cost of Rs. 1,000/- added.
  • Total amount demanded: Rs. 1,15,000/-.
  • Payment must be made within 15 days of receipt of this notice.

Regulatory Changes

No new regulatory changes. This notice is an enforcement 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 must pay Rs. 1,15,000/- within 15 days of receiving this notice via EFT/NEFT/RTGS to A/c No. SEBIRRDPEN9035 at ICICI Bank (IFS Code: ICIC0000106), or through the online payment portal at https://siportal.sebi.gov.in, or via the SEBI website path: Enforcement → Recovery Proceedings → Pay Now.
  • Confirmation of e-payment must be submitted to the Recovery Officer at SEBI Bhavan, BKC, Mumbai – 400051, or emailed to kapilsankhla@sebi.gov.in / pankajs@sebi.gov.in.
  • The defaulter must not mortgage, charge, lease, or otherwise transfer any property without the Recovery Officer’s permission after service of this notice; any such transfer shall be void under Rule 16 of the Second Schedule.
  • Transfers of property/bank funds to spouse, minor child, son’s wife, or son’s minor child without adequate consideration on or after 28.01.2025 will be treated as the defaulter’s property for recovery purposes.

Important Dates

  • 28.01.2025: Date of original penalty order (QJA/AA/WRO/WRO/31146/2024-26).
  • 20.02.2026: Date of issuance of this Notice of Demand.
  • Within 15 days of receipt: Deadline for payment of Rs. 1,15,000/-.

Impact Assessment

This is an individual enforcement action with no broad market or systemic impact. The notice is directed solely at Kirtibhai Chavda / Shreesons Enterprise in connection with the Real Capital Services matter. Failure to pay within the stipulated period may lead to attachment and sale of movable/immovable property, attachment of bank accounts, arrest and detention, or appointment of a receiver. The financial quantum (Rs. 1,15,000/-) is small and has no material effect on markets or other market participants.

Impact Justification

Routine enforcement recovery notice targeting a specific individual/proprietorship for a relatively small penalty amount (Rs. 1,15,000/-); no broad market or systemic impact.