Kerala Housing Finance: Sebi extends time to auction properties to Feb 18

Markets regulator Sebi on Monday said it has extended the time period to auction the properties of Kerala Housing Finance to February 18, in the wake of the ongoing pandemic situation in Kerala.

Earlier, the property was scheduled to be auctioned on February 4.

In addition, the regulator has extended the last date of submission of the bids to February 15, from January 31, the Securities and Exchange Board of India (Sebi) said in a notice.

"Considering the COVID-19 pandemic situation existing in the state of Kerala and for the convenience of the proposed bidders for their site visit and submission of bids, it has been decided to extend the last date of submission of the bids and date of e-auction," Sebi said.

The regulator will auction properties of Kerala Housing Finance at a reserve price of Rs 1.3 crore in order to recover investors' money. The online auction will take place between 11 am and 12 noon.

The properties to be put on sale are land parcels and flats situated in Kerala along with an Ashok Leyland AC Semi Deluxe Airbus.

Kerala Housing Finance had garnered funds from investors through the issuance of securities without complying with the regulatory norms.

Quikr Realty Ltd has been engaged by Sebi to assist it for the sale of the property, through e-auction platform, C1 India.

The intending bidders should make their own independent enquiries regarding the encumbrances, litigations, attachments, acquisition liabilities of the asset in respect of the property put on auction, prior to submitting their bid.

According to a Sebi order, Kerala Housing Finance had issued six series of secured redeemable Non-Convertible Debentures (NCDs) labelled A to F to 23,538 allottees and mobilised funds to the tune of Rs 158 crore during 1999-2014.

In addition, the company had allotted preference shares to a total of 1,071 investors and garnered Rs 19 crore during 2014-15 and 2015-16, as per the order.

In August 2017, Sebi had directed Kerala Housing Finance and its promoters as well as directors to refund investors' money, along with interest, within 180 days.

The move came after the regulator received a reference from National Housing Bank stating that Kerala Housing Finance raised funds from the public without complying with the regulatory requirements.