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India’s capital markets regulator, SEBI, is facing a growing challenge as it labels a massive INR 76,293 crore in dues as “Difficult to Recover” (DTR) as of March 2024, marking a 4% rise from the previous year. These DTR dues highlight the complexities of enforcement within India’s financial sector, representing amounts that remain unpaid despite extensive recovery efforts.
A significant portion of these dues is tied up in cases pending before court-appointed committees, which have become major obstacles to recovery. Of the 807 DTR cases, two categories stand out: 36 cases, amounting to INR 12,199 crore, are stuck in ongoing proceedings at State PID courts, the National Company Law Tribunal (NCLT), and the National Company Law Appellate Tribunal (NCLAT).
Another 60 cases, with a staggering INR 59,970 crore at stake, are caught up in court-appointed committee deliberations. These two categories alone account for 95% of the total DTR amount, highlighting the legal and procedural hurdles SEBI faces in its recovery efforts.
In addition, 140 DTR cases fall under the “untraceable” category, involving 131 individuals and nine companies, with dues of INR 13.3 crore and INR 15.7 crore, respectively. Despite these challenges, SEBI remains committed to its recovery mission, emphasizing that classifying dues as DTR is merely an administrative step and does not relieve recovery officers of their duty to collect outstanding amounts if circumstances change.
SEBI’s annual report for 2023-24, which provides insight into the DTR dues, is part of its broader push for greater transparency in enforcement proceedings. As of March 31, 2024, SEBI had issued 6,781 recovery certificates, with 3,871 still pending. The total amount to be recovered stands at a staggering INR 1.03 lakh crore. Notably, INR 63,206 crore, or 61.5%, is tied to Collective Investment Scheme (CIS) and Deemed Public Issue (DPI) cases involving PACL Ltd and Sahara India Commercial Corporation Ltd.
Beyond recovery efforts, SEBI has been actively investigating securities law violations. In 2023-24, the regulator initiated 342 new cases related to market manipulation, price rigging, and insider trading, a sharp increase from the 144 cases in the previous year. SEBI successfully concluded 197 investigations during this period, underscoring its commitment to maintaining market integrity.
