Capital markets regulator Sebi on Tuesday said it will auction 11 properties of Arise Bhoomi Developers and its directors on July 14 for a reserve price of over Rs 43 crore to recover investors’ money. The properties that have been put on sale include land parcels, a shop and a plot, located in Uttar Pradesh and Maharashtra, the Securities and Exchange Board of India (Sebi) said in a notice.
Arise Bhoomi Developers mobilised over Rs 8 crore during 2013-14 from the public in the name of the ‘purchase of agricultural land’ through its various investment schemes, promising them an expected sum at the end of the contract.
The schemes, as per Sebi, qualified to be a CIS (collective investment scheme), which requires compulsory registration from the regulator. However, the company launched the schemes without obtaining the necessary approvals from the regulator.
Inviting bids, Sebi said it will auction the properties belonging to the company and its directors through an online mode on July 14 between 11 am to 1 pm. Further, the total reserve price has been pegged at Rs 43.6 crore.
Sebi said Adroit Technical Services Ltd has been engaged by it to assist in the sale of the properties through the e-auction platform.
Earlier, the regulator had attached some of their properties after directives asking them to refund investors’ money, along with interest did not materialise. In the case, Sebi had also attached bank and demat accounts.
In June 2016, Sebi ordered Arise Bhoomi Developers and its directors to refund investors’ money in three months. Besides, they were barred from the securities market for four years.
However, they failed to pay investors’ money, and consequently, Sebi attached their bank and demat accounts in October 2016 to recover pending dues.
In November 2018, Sebi levied a fine totalling Rs 1 crore on the firm and its directors for mobilising funds from small investors through an unregistered collective investment scheme.
