Sebi to auction 30 properties of 6 companies to recover money on Feb 13

The companies whose properties will also be auctioned are Bishal group of companies, Purusattam Infotech Industries, NVD Solar Ltd, Sun Plant Business, Mangalam Agro and Jivan Sathi Dream Projects

Sebi on Thursday said it will auction 30 properties of six companies, including Mangalam Agro Products, on February 13 to recover money illegally collected from the investors.

The properties will be auctioned for a reserve price of nearly Rs 30 crore.

The other companies whose properties will also be auctioned are Bishal group of companies, Purusattam Infotech Industries, NVD Solar Ltd, Sun Plant Business and Jivan Sathi Dream Projects.

The properties that go under the hammer include land parcels, plots, land with building structures and flats in West Bengal and Odisha, and they will be auctioned at a reserve price of Rs 29.97 crore, according to a notice issued by Securities and Exchange Board of India (Sebi).

The markets regulator invited bids for sale of properties in the recovery proceedings against Mangalam Agro Products, Purusattam Infotech Industries, Jivan Sathi Dream Projects, Sun Plant Business, Bishal group and NVD Solar, along with their promoters/ directors, it said.

The move is part of Sebi's effort to recover investors' money.

Further, Adroit Technical Services has been engaged by the regulator to assist it in sale of the properties.

Of the 30 properties being put on the block, 10 are related to Mangalam Agro Products, eight to Bishal group of companies, five related to directors of NVD Solar, four of Sun Plant Business Ltd, two properties related to Jivan Sathi Dream Projects and one of Purusattam Infotech Industries.

The markets watchdog said the auction will be conducted online on February 13 from 11 am to 1 pm.

Sebi has asked the bidders to make their own independent enquiries regarding the encumbrances, litigations, title of the properties put on auction and claims, before submitting their bid.

These firms had mobilised money from investors without complying with regulatory norms.

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 Sun Plant Business had collected Rs 4.17 crore from 2005 to 2008.

Bishal Distillers had raised funds to the tune of Rs 4 crore, Bishal Agri-Bio Industries and Bishal Horticulture and Animal Projects had mobilised Rs 3 crore and Rs 2.84 crore, respectively. The funds were mobilised by the firms between 2006-2014.

Also, Bishal Abasan India raised Rs 2.75 crore during 2011-12, apart from mopping up Rs 89 crore through issuance of NCDs during 2012-14.

NVD Solar had raised Rs 595 crore through issuance of fresh equity shares to more than 1 lakh entities during 2012-13 without complying with the regulatory provisions applicable for a public issue.