The notice comes after Future Enterprises failed to pay the penalty imposed on it by the market regulator.
New Delhi:
Capital markets regulator SEBI on Wednesday sent a notice to Future Enterprises asking it to pay over Rs 5 lakh in a case related to disclosure about Amazon initiating arbitration proceedings against Future Group.
The regulator also warned the company of attachment of assets and bank accounts if it fails to make payments within 15 days.
The notice comes after the company failed to pay the penalty imposed on it by the Securities and Exchange Board of India (SEBI).
In an order passed in March, the capital markets regulator had imposed a fine of Rs 5 lakh on Future Enterprises for disclosure defaults in a case related to arbitration proceedings against Future Group by Amazon.com NV Investment Holdings LLC.
Future Enterprises failed to disclose information about the initiation of arbitration proceedings and passed an order in favor of Amazon on October 25, 2020.
SEBI in its notice directed Future Enterprises to pay Rs 5.21 lakh, including penalty, interest and recovery cost, within 15 days.
In case of non-payment of dues, the market regulator will recover the amount by attachment and sale of the movable and immovable assets of the company. In addition, the firm faces attachment of its bank accounts.
The regulator can also adopt the route of arrest and detention in jail to recover the amount.