Delay In Rejoinder Condoned, Bank Account Partially Defrozen Solely To Repay Investors Via SEBI-Approved List

The AT condoned the delay in filing the rejoinder and addressed the appellants' request to pay investors directly. SEBI suggested that the appellants deposit the payable amount with SEBI, allowing SEBI's recovery officers to handle payments. The AT directed the appellants to first submit to SEBI a list of investors with their bank account details. Upon approving the list, SEBI must instruct the appellants' bank to allow operation of the frozen account only for making payments to the approved investors. The application for defreezing the bank account was disposed of accordingly.

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Delay in filing the reply and rejoinder was condoned and both pleadings were taken on record. The appeal was admitted. Appellants sought permission to make payments directly to investors; SEBI proposed that appellants deposit the amounts with SEBI so its recovery officers could deal with investors. The tribunal accepted SEBI's proposal that "payments be made through banking channels after furnishing the details of persons to whom such payments will be made." Appellants are directed to submit a list of investors with bank account details to SEBI; after approval by SEBI's recovery officers, payments shall be effected through proper banking channels. While granting approval, SEBI shall instruct the appellant's bank to "permit him to operate the account for the limited purpose of making the payments to the approved investors." Misc. Application No. 670 of 2025 for defreezing of bank account stands disposed of. Next call: September 26, 2025.

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