Sebi to auction 23 properties of 9 firms in Feb to recoup illicit funds

Sebi on Monday said it has scheduled an auction of 23 properties belonging to nine firms, such as Tower Infotech and Vibgyor Group of Companies in February, aimed to recoup funds illicitly collected from investors.

Additionally, GBC Industrial Corporation, Waris Group, Pincon Group, Kolkata Weir Industries Ltd (KWIL), Annex Infrastructure India, I-core Group and MPS Group were the other firms whose properties will also be auctioned.

The process for the sale of the companies' assets has been initiated by the markets watchdog following the orders of Calcutta High Court.

The properties include plots, apartments and buildings located in West Bengal. It will be auctioned at a reserve price of Rs 55 crore, according to a notice issued by the Securities and Exchange Board of India (Sebi).

Justice Sailendra Prasad Talukdar has been appointed as the one-man committee for liquidating the assets of the firm and repaying the investors. The move is part of Sebi's effort to recover investors' money.

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

Of the 23 properties, seven each belong to Tower Infotech and Vibgyor Group, two each related to the Waris Group and GBC Industrial Corporation and the rest belong to MPS Group, I-Core Group, Annex Infrastructure India, KWIL and Pincon Group.

Sebi on behalf of the committee is inviting bids for the sale of the properties from the bidders. The regulator said the auction will be auctioned online on February 6, 2025, from 11 am to 1 pm.

The markets watchdog 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 mopped up money from investors without complying with regulatory norms.

Vibgyor Allied Infrastructure had issued optionally fully convertible debentures in 2009 and raised Rs 61.76 crore  Tower Infotech had raised nearly Rs 46 crore through the issuance of non-convertible debentures and redeemable preference shares between 2005 and 2010.