The Securities and Exchange Board of India (SEBI) announced it will auction 19 properties from seven companies on August 12. This is part of SEBI’s effort to recover money that these companies collected illegally from investors.
The companies involved include Mangalam Agro Products, Sun Plant Business Ltd, Sumangal Industries, Sunheaven Agro India, Ravi Kiran Realty India Ltd, Jivan Sathi Dream Projects, and Purusattam Infotech Industries. The properties up for auction include land with building structures, flats, land parcels, and land with structures located in West Bengal and Odisha. The total reserve price for these properties is set at Rs 20.74 crore.
SEBI’s notice, issued on July 10, invites bids for the properties as part of the recovery proceedings. The auction will be conducted online on August 12 from 11 am to 1 pm. Adroit Technical Services has been engaged to assist in the auction process.
SEBI advises potential bidders to make their own independent inquiries about any encumbrances, litigations, attachments, or claims related to the properties before submitting their bids.
The auctioned properties include seven linked to Mangalam Agro Products, four to Sun Plant Business Ltd, three to Sumangal Industries, two to Jivan Sathi Dream Projects, and one property each of Sunheaven Agro India, Ravi Kiran Realty India, and Purusattam Infotech Industries.
These companies had raised funds from investors without complying with market norms. For instance, Sunheaven issued Redeemable Preference Shares to about 7,772 investors, mobilizing Rs 11.54 crore between 2009 and 2013. Ravi Kiran raised funds by issuing RPS to 1,176 individuals. Mangalam Agro raised Rs 11 crore from illegal issuance of secured non-convertible debentures to around 4,820 investors during 2011-2012. Sun Plant Business collected Rs 4.17 crore from 2005 to 2008, and Sumangal collected Rs 85 crore through illegal collective investment schemes.
