Market regulator SEBI has said it will auction the property of the Saradha Group of companies next month at a reserve price of over ₹3 crore to recover money raised by the firm from the public through illicit schemes.
The property located in West Bengal will go under the hammer, the Securities and Exchange Board of India (SEBI) said in a notice dated September 15.
The regulator said the e-auction will be conducted between 11 am and 1 pm on October 17. The reserve price of the property is pegged at ₹3.68 crore.
SEBI has engaged Quikr Realty to assist it in the sale of the property and appointed C1 India as the e-auction provider.
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The development came after the Calcutta High Court passed an order in June 2022, whereby it directed the regulator to proceed with the auction of properties of the Saradha Group of Companies.
Saradha Group, a consortium of over 239 private companies, allegedly ran chit-fund operations in West Bengal, Assam and Odisha, and raised around ₹4,000 crore from 1.7 million depositors before it collapsed in April 2013.
As per the notice, the regulator said bidders should make their own independent enquiries regarding the encumbrances, litigations, attachments and acquisition of liabilities of the property put on auction, prior to submitting their bid.
"The purchaser shall participate in the e-Auction on his own behalf and no third party intervention, like authorised agent/representative, would be permitted.
"The successful bidder shall bear the charges/ fee payable for the transfer of the property in his/ her name. All taxes shall be borne by the purchaser," the notice said.