Mumbai, Oct. 25: Market watchdog Sebi today moved to attach the bank accounts of MPS Greenery Developers to recover Rs 1,520 crore.

Armed with more powers to recover money, the Securities and Exchange Board of India has asked eight banks — Axis, ICICI, HDFC Bank, IDBI, Bank of India, Canara Bank, Oriental Bank of Commerce and Uco Bank — to attach the accounts of the “defaulter”.

In December last year, Sebi had asked MPS Greenery to close its collective investment scheme (CIS) and refund investors within one month, failing which, it had warned, proceedings would be initiated.

Till September 2012, MPS had raised Rs 1,520 crore from the public. The market cop had then said that if MPS failed to comply with the directions, prosecution proceedings against the company and its promoters, directors, managers and persons in charge of the business of the scheme would be initiated.

Sebi said MPS Greenery had failed to comply with its order and, therefore, the regulator was now passing an attachment order to recover the money.

The capital market regulator has asked the eight banks to attach at least 51 accounts held by MPS Greenery, as also other accounts that the defaulter entity may have with them.

MPS has the highest number of accounts with Axis Bank (35).

Sebi also ordered the attachment of “all other accounts by whatever name called of the defaulter, either singly or jointly with any other persons”.

It further asked the banks not to allow any debit in these accounts until further orders. However, credits into the account may be allowed.

“I am not yet aware of it (Sebi order). We are still to receive the communication for attachment of bank accounts from Sebi. Once we get it we would take necessary legal advice on the matter and act accordingly. We have a provisional registration (from Sebi) and necessary court orders for running our operations,” said MPS chairman P. Manna.

He added that based on those orders, the company was continuing with its finance scheme.