The properties will be auctioned at a reserve price of Rs 28.66 crore.
To recover illegally deposited money from investors, capital markets regulator SEBI is going to auction the assets of five companies on January 27, 2025. The assets that will be auctioned in this auction include flats, residential properties and lands with flats, land parcels, plots and building structures located in West Bengal and Odisha. According to PTI news, the properties will be auctioned at a reserve price of Rs 28.66 crore. These properties are located in West Bengal and Odisha.
The properties of these companies will be auctioned
According to the news, the names of the companies whose properties will be auctioned are – Bishal Group and Sumangal Industries, Ravi Kiran Realty India, Mangalam Agro Products and Purushattam Infotech Industries and others. A notice in this matter was issued by the Securities and Exchange Board of India (SEBI) on December 19. SEBI invited bids for sale of assets in recovery proceedings against five firms and their promoters/directors.
The auction will take place from 11 am to 1 pm
The regulator has appointed Adroit Technical Services to assist in the sale of the assets. Of the 28 properties that have been put up for auction, 17 are linked to Bishal Group, 6 to Mangalam Agro Products, 3 to Sumangal Industries and 1 each to Purushattam 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.
Appeal for independent investigation
The regulator has asked bidders to conduct independent due diligence on liabilities, litigation, titles and claims of properties put up for auction before bidding. These institutions had raised money from investors without following market rules. According to previous SEBI orders, Mangalam Agro had raised Rs 11 crore from illegal issuance of secured non-convertible debentures (NCDs) to around 4,820 investors during 2011-2012, while Sumangal had raised funds through illegal collective investment schemes (CIS). Rs 85 crore was collected from investors.
Who raised how much money?
Besides, Bishal Distillers had raised Rs 4 crore, Bishal Agri-Bio Industries and Bishal Horticulture and Animal Projects had raised Rs 3 crore and Rs 2.84 crore, respectively. These funds were raised by the firms between 2006-2014. Additionally, Bishal Abasan India raised Rs 2.75 crore during 2011–12, besides Rs 89 crore through NCD issuance in 2012–14. Additionally, Ravi Kiran raised funds by issuing RPS to 1,176 individuals.
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