Sebi will auction 28 properties of five companies, including Bishal Group and Sumangal Industries, on January 27, to recover money illegally collected from investors by these companies. The properties will be auctioned for a reserve price of Rs 28.66 crore. Ravi Kiran Realty India, Mangalam Agro Products , and Purusattam Infotech Industries are the other companies, whose properties will be auctioned.
The properties that will go under the hammer include flats, residential property and flats, land parcels, plots, and land with building structures located in West Bengal and Odisha.These properties will be auctioned at a reserve price of Rs 28.66 crore, according to a notice issued by the Securities and Exchange Board of India (SEBI) on December 19.
The markets watchdog invited bids for the sale of properties in the recovery proceedings against the five firms, along with their promoters/directors, it said.
The move is part of Sebi’s efforts to recover investors’ money. Further, Adroit Technical Services has been appointed by the regulator to assist it in the sale of properties.
Of the 28 properties being put on the block, 17 are linked to Bishal Group, 6 to Mangalam Agro Products, 3 are related to Sumangal Industries, and 1 each to Purusattam Infotech Industries and Ravi Kiran Realty India.
Sebi said the auction will be conducted online on January 27, 2025, from 11 am to 1 pm.
The regulator has asked the bidders to make their independent enquiries regarding the encumbrances, litigations, title of the properties put on auction and claims before submitting their bid.
These entities had mobilised money from the investors without complying with the market regulations.
Going by Sebi’s earlier orders, Mangalam Agro had raised Rs 11 crore from the illegal issuance of secured non-convertible debentures (NCDs) to around 4,820 investors during 2011-2012, while Sumangal had collected Rs 85 crore from investors through illegal collective investment schemes (CIS).Bishal Distillers had raised funds of Rs 4 crore, Bishal Agri-Bio Industries and Bishal Horticulture and Animal Projects mobilised Rs 3 crore and Rs 2.84 crore, respectively. The funds were mobilised by the firms between 2006-2014.
Also, Bishal Abasan India raised Rs 2.75 crore during 2011-12, apart from mopping up Rs 89 crore through issuance of NCDs in 2012-14. Besides, Ravi Kiran raised funds by issuing RPS to 1,176 individuals.
