Sebi to auction Suman Motels' property

Sebi today ordered auction of Suman Motels' property to recover funds from the company, against which the regulator had initiated attachment proceedings to recover pending dues worth about Rs 23 crore.
The order has been jointly passed by Sebi and Mumbai's deputy collector under Maharashtra Protection of Interest of Depositors (in Financial Establishment) Act.
In a notice issued today, the authorities said that they will sell a commercial property of Suman Motels in Mumbai on August 26, 2015 from 10:30 AM to 11:30 AM "with auto time extension of 5 minutes each till sale is concluded."
The reserve price of the property is fixed at Rs 2.85 crore.

The property would not be sold below the reserve price fixed, the market regulator said.
Further, the successful bidder would have to deposit 25 per cent of the bid amount plus poundage fee immediately after close of auction and the balance amount within 15 days from the date of auction.
Earlier in October 2002, Sebi had barred Suman Motels and its officials from the capital market for five years after it failed to comply with its July order that directed the company to refund money collected under the collective investment schemes with returns due to investors within a period of one month.