Sebi has announced plans to auction 30 properties belonging to seven companies, including Mangalam Agro Products and Purusattam Infotech Industries, on May 15, 2024. This auction aims to recover funds unlawfully obtained from investors, with the reserve price set at approximately Rs 25.64 crore.
The companies whose properties are to be auctioned also include Bishal Group of Companies, NVD Solar Ltd, Sun Plant Business, Sumangal Industries Ltd, and Jivan Sathi Dream Projects. The properties up for auction consist of land parcels, structures with land, and flats located in West Bengal and Odisha, with a collective reserve price of Rs 25.64 crore, as per Sebi’s notice.
Sebi has invited bids for the sale of these properties as part of its efforts to reclaim investors’ funds. Adroit Technical Services has been appointed by the regulatory body to facilitate the property sale process.
Among the 30 properties listed for auction, nine belong to Mangalam Agro Products, six to the Bishal Group of Companies, five are associated with NVD Solar’s directors, four with Sun Plant Business Ltd, and three with Sumangal Industries. Additionally, there are two properties linked to Jivan Sathi Dream Projects and one to Purusattam Infotech Industries.
The auction will be conducted online on May 15, 2024, from 11 am to 1 pm, and Sebi has advised potential bidders to conduct their own inquiries into any encumbrances, legal disputes, property titles, and claims before placing bids.
These companies raised funds from investors without adhering to regulatory requirements. For instance, Mangalam Agro Products raised Rs 11 crore through the illegal issuance of secured non-convertible debentures to approximately 4,820 investors during 2011-2012. Similarly, Sun Plant Business collected Rs 4.17 crore between 2005 and 2008.
Other companies like Bishal Distillers, Bishal Agri-Bio Industries, Bishal Horticulture and Animal Projects, and Bishal Abasan India raised funds ranging from Rs 2.75 crore to Rs 4 crore between 2006 and 2014 through various means, including the issuance of non-convertible debentures.
NVD Solar raised Rs 595 crore during 2012-13 through the issuance of fresh equity shares to over 1 lakh entities without complying with regulatory provisions. Sumangal Industries collected Rs 85 crore from investors through illegal collective investment schemes.