Sebi to auction 28 properties of 5 companies next month

NEW DELHI, Dec. 23 (Xinhua) — Capital markets regulator Sebi will auction 28 properties belonging to five companies including Bishal Group and Sumangal Industries on January 27 to recover funds illegally collected by these companies from investors.

The property will be auctioned at reserve price $28.66 Crores. Properties of companies such as Ravi Kiran Realty India, Mangalam Agro Products and Purusattam Infotech Industries will also be auctioned.

The properties that will be auctioned include apartments, residential properties and apartments, plots, plots and land with built structures located in West Bengal and Odisha.

The properties will be auctioned at reserve prices $28.66 crore, according to a notification issued by the Securities and Exchange Board of India (SEBI) on December 19.

The market regulator has invited bids for the sale of the properties in recovery proceedings against the five companies and their promoters/directors.

The move is part of Sebi’s efforts to recover investor funds. Additionally, Adroit Technical Services has been appointed by the regulator to assist with the sale of the property.

Of the 28 properties in the block, 17 are associated with Bishal Group, six with Mangalam Agro Products, three with Sumangal Industries and one each with Purusattam Infotech Industries and Ravi Kiran Realty India.

Sebi said the auction will be held online from 11 am to 1 pm on January 27, 2025.

The regulator requires bidders to conduct independent investigations into encumbrances, litigation, ownership and claims on auctioned properties before submitting bids.

These entities raise funds from investors without complying with market rules.

Mangalam Agro raises funds based on Sebi’s previous orders $Between 2011 and 2012, Rs 11 crore was lost through illegal issuance of secured non-convertible debentures (NCDs) to around 4,820 investors, of which Sumangal had collected $850 million rupees were obtained from investors through an illegal collective investment scheme (CIS).

Bishal Distillers has raised funds $Mobilizing Rs 4 Crore, Bishal Agri-Bio Industries and Bishal Horticulture and Animal Projects $3 Crores and $2.84 lakh respectively. The funds were raised by the company between 2006 and 2014.

In addition, Bishal Abasan India proposed $During 2011-12, Rs 275 crore was spent besides the sweep $Rs 89 crore was raised through NCD disbursement in 2012-14. Additionally, Ravi Kiran raised funds by issuing RPS to 1,176 people.