Markets regulator Sebi on Monday said it has lined up 22 properties of seven companies — including Pailan Group, Vibgyor Group and GBC Industrial Corp group — for auction on July 8 to recover money illegally collected from investors.
Other firms, whose properties will also be auctioned, are Tower Infotech Group, Waris Group, Teachers’ Welfare Credit and Holding Group, and Annex Infrastructure India Ltd.The regulator has initiated the process for the sale of assets of the companies as per orders by the Calcutta High Court.Justice Sailendra Prasad Talukdar has been appointed as the one-man committee for liquidating the assets of the firms and repaying the investors. The move is part of Sebi’s effort to recover investors’ money.
The properties include plots and a flat in West Bengal and they will be auctioned at a reserve price of Rs 45.47 crore, according to a notice issued by the Securities and Exchange Board of India (Sebi).
Adroit Technical Services Ltd has been engaged by the regulator to assist it in the sale of the properties.
Of the 22 properties, 10 belong to Pailan Group, Vibgyor group’s four, GBC Industrial Corp’s three, Tower Infotech group’s two and one each of Waris Group, Annex Infrastructure India, and Teachers Welfare Credit and Holding Group.
The markets watchdog on behalf of the committee is inviting bids for the sale of properties from the bidders.
Sebi said the auction will be conducted online on July 8 from 11 am to 1 pm.
These firms had mopped up money from investors without complying with regulatory norms.
Pailan Group — Pailan Agro India Ltd and Pailan Park Development Authority Ltd — had mobilised over Rs 98 crore from the public through the issue of non-convertible secured redeemable debentures.
Vibgyor Allied Infrastructure had issued optionally fully convertible debentures in 2009 and raised Rs 61.76 crore.
Also, Tower Infotech raised nearly Rs 46 crore through the issuance of non-convertible debentures and redeemable preference shares between 2005 and 2010.