Sebi on Monday ordered the attachment of bank and demat accounts of Sahara Group firms, its chief Subrata Roy and others to recover Rs 6.42 crore for violating regulatory norms in the issuance of optionally fully convertible debentures (OFCDs).

The recovery proceedings against five entities — Sahara India Real Estate Corporation (now known as SaharaCommodity Services Corporation), Subrata Roy, Ashok Roy Choudhary, Ravi Shanker Dubey and Vandana Bharrgava — includes interest, all costs, charges and expenses, the Securities and Exchange Board of India (Sebi) said in the attachment order.

In its notice, Sebi asked all banks, depositories and mutual funds not to allow any debit from these accounts.

However, credits have been permitted.

Further, the market watchdog has directed all banks to attach all accounts, including lockers, of the defaulters.

The regulator, in its order in June, levied a fine totalling Rs 6 crore on Sahara India Real Estate Corp, Subrata Roy, Ashok Roy Choudhary, Dubeyand Bharrgava.

The case relates to the issuance of OFCDs by Sahara India Real Estate Corporation and Sahara Housing Investment Corporation during 2008-09.

They raised money through the public issue of securities by issuing OFCDs without following the various procedures intended to protect the interests of the investors, in respect of public issues, prescribed under the norms, according to the Sebi order.

According to Sebi, the subscription towards the OFCDs was solicited by the two firms from the general public throughout the country, without adequately informing them about the risks involved in the instruments.

The issuance was allegedly done in contravention of the provisions of Sebi’s Issue of Capital and Disclosure Requirements regulations and Prohibition of Fraudulent and Unfair Trade Practices.