Sebi to auction properties of HBN Dairies in Feb at Rs 83 cr reserve price

Capital markets regulator Sebi will auction 26 properties of HBN Dairies & Allied Ltd for a reserve price of Rs 83 crore in February.

The move is part of the markets watchdog's effort to recover money raised by HBN Dairies & Allied through illicit collective investment schemes.

The order came after the Supreme Court in its order on May 14, 2024 authorised Sebi to sell the assets of HBN Dairies & Allied Ltd (HBN) with the active involvement of the liquidator.

The Securities and Exchange Board of India (Sebi) initiated the process for the sale of the assets after HBN and its directors -- Harmender Singh Sran, Amandeep Singh Sran, Manjeet Kaur Sran and Jasbeer Kaur -- failed to refund investors' money.

The properties to go under the hammer include plots, land parcels, and commercial shops, Sebi said in a notice on January 22.

The properties are located in New Delhi, Gujarat, Maharashtra, Punjab, Madhya Pradesh and Chhattisgarh and will be auctioned at a reserve price of Rs 83.26 crore.

Quikr Realty has been engaged by Sebi to assist it in the e-auction while C1 India has been appointed as the e-auction service provider, the regulator added.

As per the notice, Sebi said bidders should make independent enquiries regarding the encumbrances, litigations, attachments and acquisition liabilities of the properties put on action prior to submitting their bid.

"Sale or auction shall be through online bidding. Bidders can participate in the e-auction from anywhere," the regulator noted.

The markets regulator is inviting bids for the sale of properties in the recovery proceedings against HBN Dairies & Allied Ltd and its directors.

Sebi said the auction will be conducted online from 11 am to 1 pm on February 27.

The company had illegally mobilised Rs 1,136 crore from gullible investors through schemes involving purchase of cattle to earn huge returns from the sale of ghee.

By indulging in these practices, HBN Dairies & Allied had contravened the regulatory norms.

Sebi had in August last year auctioned eight properties of HBN Dairies & Allied Ltd.