Sebi on Wednesday sent notices to Sahara Group companies, its CEO Subrata Roy and others, ordering them to pay Rs 6.42 crore within 15 days for violations of regulatory norms.

Sebi also warned that assets and bank accounts would be confiscated if they did not pay. The notice came after the entity failed to pay a fine imposed by the Securities and Exchange Board of India (Sebi).

In a June order, the regulator-imposed fines totalling Rs 6 crore on five entities – Sahara India Real Estate (now known as Sahara Merchandise Services), Subrata Roy, Ashok Roy Choudhary, Ravi Shanker Dubey and Vandana Bharrgava, for issuing optional fully convertible debentures (OFCDs) in violation of regulatory norms.

The case involved OFCDs issued by Sahara India Real Estate and Sahara Housing Investments in 2008-2009. According to Sebi, they issued OFCDs to raise funds through public securities without following various procedures designed to protect investors’ interests in regulated public issues.

According to Sebi, the two companies solicited OFCD subscriptions from the national public without adequately informing them of the risks involved in these tools.

The issuance violates Sebi’s ICDR (Issue of Capital and Disclosure Requirements) regulations and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.

In the latest notification, Sebi directed the five entities to pay Rs 642 crore, including interest and recovery costs, within 15 days.

If dues are not paid, the market regulator will recover the money by seizing and selling the entity’s movable and immovable property. Additionally, they face dependence on bank accounts. In addition, regulators resorted to arresting and detention to recover the amount.