Description

SEBI releases attachment of bank accounts, demat accounts, and mutual fund folios of Arun Panchariya (PAN: AEVPP6125N) after completion of recovery proceedings under RC No. 7816 of 2024, following SAT order and payment of revised penalty of Rs. 20 Lakhs.

Summary

SEBI’s Recovery Officer has issued a release order directing all banks, mutual funds, NSDL, and CDSL to release the attached bank accounts/lockers, demat accounts, and mutual fund folios of Arun Panchariya (PAN: AEVPP6125N). The release follows the completion of recovery proceedings under Recovery Certificate No. 7816 of 2024, after the defaulter paid a revised penalty of Rs. 20 Lakhs pursuant to a SAT order and subsequent fresh SEBI order.

Key Points

  • Recovery Certificate No. 7816 of 2024 dated 10.06.2024 was originally drawn for recovery of Rs. 87,77,01,000 (Rs. 87.77 Crores) against Arun Panchariya (PAN: AEVPP6125N)
  • Attachment notices dated July 01, 2024 (Attachment Proceeding Nos. 12279 & 12280 of 2024) had frozen the defaulter’s bank accounts/lockers, demat accounts, and mutual fund folios
  • Defaulter filed Appeal No. 21/2023 before Hon’ble SAT against WTM Order dated 15.12.2021
  • SAT vide order dated 15.10.2025 set aside the penalty imposed in para (ix) of the WTM Order and directed SEBI to re-examine the quantum of fine
  • SEBI passed a fresh order dated 05.02.2026 imposing a revised penalty of Rs. 20 Lakhs
  • Defaulter paid the revised penalty amount in full
  • Recovery proceedings are now deemed completed; all attached assets are to be released

Regulatory Changes

No new regulatory changes introduced. This order is an administrative closure of existing recovery proceedings following judicial direction from SAT and payment of revised penalty.

Compliance Requirements

  • All banks in India are directed to release attached bank accounts and lockers of Arun Panchariya pursuant to attachment notices dated 01.07.2024
  • All mutual funds in India are directed to release attached mutual fund folios of the defaulter
  • NSDL and CDSL, Mumbai are directed to release attached demat accounts of the defaulter
  • Release is to be effected immediately upon receipt of this order

Important Dates

  • 10.06.2024: Recovery Certificate No. 7816 of 2024 originally issued
  • 01.07.2024: Attachment notices (Proceeding Nos. 12279 & 12280 of 2024) issued
  • 15.10.2025: SAT order setting aside original penalty and directing re-examination
  • 05.02.2026: Fresh SEBI order imposing revised penalty of Rs. 20 Lakhs
  • 05.05.2026: Release order issued after penalty payment

Impact Assessment

This order has no broader market or systemic impact. It is an individual recovery case closure affecting only the personal financial assets of Arun Panchariya. The significant reduction in penalty — from recovery of Rs. 87.77 Crores to Rs. 20 Lakhs — reflects the SAT’s partial relief granted to the defaulter. Banks, depositories, and mutual funds holding attached assets of this individual are obligated to process the release promptly.

Impact Justification

Routine administrative release order concluding individual recovery proceedings against a single defaulter; no broader market or systemic impact.