Authority: High Court at Calcutta (Constitutional Writ Jurisdiction)

Order Date: 08 October 2026

Case Overview

  • Parties: petitioner Shri Kali Kishore Bagchi vs. Union of India & others (including SEBI). Represented by Mr Biswaroop Bhattacharya (petitioner) and Ms Aasia Hasan (SEBI).
  • Petition: W.P.O. No. 159 of 2026 seeking mandamus to remove debit‑freeze status on his savings accounts – PNB account No. 0851200100004780 (Rabindra Sarobar Branch, Kolkata) and HDFC account No. 99999831179062 (Kalikapur Branch, Kolkata) – and to quash any freezing orders.
  • Background: Bagchi was appointed Executive Director of Amrit Projects Limited (later Amrit Projects (N.E.) Ltd) in July 2007, serving in a technical capacity for a 10 MW biomass power project. He resigned on 8 April 2013. Post‑resignation, the company issued deep‑discount bonds and preferential shares, later defaulting on investor repayments, prompting SEBI action.
  • SEBI Proceedings:
  • Show‑cause notice dated 4 June 2018 alleging violations of Companies Act and SEBI Regulations in fund mobilisation.
  • Interim orders dated 22 Aug 2014, 9 Sept 2014 and 26 Feb 2016 restraining the company and its directors from accessing securities markets, issuing securities, and directing refund of monies collected from investors (Rs 10,38,54,000 from 5,033 investors).
  • Final order dated 23 Feb 2016 (WTM) directing refund of the full amount with 15 % per annum interest compounded half‑yearly, mandating asset inventory, prohibiting market access for four years post‑refund, and restricting directors from associating with listed companies.
  • Appeal against the 23 Feb 2016 order (Appeal No. 142 of 2017) dismissed by Securities Appellate Tribunal on 10 Jan 2018.
  • Recovery Proceedings:
  • Recovery Certificate No. 2565 of 2019 issued; attachment of all bank, demat and mutual‑fund accounts of Amrit Projects (N.E.) Ltd and its ten directors, including Bagchi, on 23 Oct 2019.
  • Impugned Remittance Order dated 21 Oct 2024 (under RC‑2565/2019) directing banks to remit attached funds amounting to Rs 9,93,29,277 to SEBI.
  • Petitioner’s Contentions:
  • Argues he had no role in fund mobilisation; final order of 24 Nov 2020 (Section 11B) recorded he was not liable for refund, thus recovery actions exceed jurisdiction.
  • Challenges calculation of the Rs 9.93 cr amount and the attachment of his personal accounts.
  • Court’s Findings:
  • Recognises that the final order of 23 Feb 2016 expressly held the directors, including Bagchi, liable for refund of Rs 10,38,54,000 with interest.
  • Notes that the Recovery Officer’s powers under the SEBI Act are execution proceedings limited to the adjudicated liability; the liability existed, therefore the recovery measures are within jurisdiction.
  • Finds no illegality in the Remittance Order of 21 Oct 2024.

Final Outcome

  • The High Court dismissed W.P.O. No. 159 of 2026, upholding SEBI’s recovery order and the debit‑freeze on Bagchi’s bank accounts. Parties may act on the server copy of the judgment posted on the Court’s website.

Topics: Securities Regulation, Bank Account Freeze