Markets regulator SEBI on Thursday said it will auction 17 properties belonging to seven business groups including MPS Group, Tower Infotech, and Vibgyor Group on June 28, with a total reserve price of ₹51 crore, in a bid to recover investors’ money.
Apart from these, the regulator has put on block properties of Prayag Group, Multipurpose BIOS India Group, Waris Finance International Group, and Pailan Group of companies, the Securities and Exchange Board of India (SEBI) said in a notice.
The 17 properties being auctioned include land parcels, storied buildings, flats, and a commercial space situated across West Bengal.
Inviting bids, SEBI said the auction of the properties will be conducted through online mode between 11 am and 1 pm. Further, the total reserve price has been pegged at ₹51 crore for the assets and Quikr Realty has been engaged by SEBI to assist in the sale of these properties.
Of the total properties to be auctioned, five belong to MPS Group, four relate to Vibgyor, three pertain to Pailan Group of companies, two belong to Tower Infotech and one each to Multipurpose BIOS India Group, Prayag Group, and Waris Finance.
The regulator said the bidders should make their own independent enquiries regarding encumbrances, the title of properties put on auction, and claims, among others prior to submitting their bids.
These firms had raised funds from investors without complying with regulatory norms, which prompted SEBI to take action.
Earlier, the regulator had attached some of their properties after directives asking them to refund investors’ money along with interest did not materialise. In these matters, the markets regulator had also attached demat and bank accounts.
Going by the SEBI orders, the MPS Group of companies includes MPS Greenery Developers that collected ₹1,520 crore from investors through illegal Collective Investment Schemes (CIS).
Prayag Infotech had made an offer of redeemable preference shares between 2007-2008 and 2011-12 and mobilised at least ₹131.37 crore from over 1.57 lakh investors.
Vibgyor Allied Infrastructure had issued optionally fully convertible debentures to 49,562 investors in 2009 and raised ₹61.76 crore.
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Tower Infotech had raised nearly ₹46 crore from more than 49,000 investors through the issuance of non-convertible debentures (NCDs) and redeemable preference shares between 2005 and 2010.
Multi Purpose Bios collected ₹5.97 crore from more than 1,460 people through redeemable preference shares between the financial year 2007-08 and 2011-12, and Waris Finance raised ₹5.12 crore by issuing NCDs from 2010-12.
The Kolkata-based Pailan Group — Pailan Agro India Ltd and Pailan Park Development Authority Ltd — had mobilised over ₹98 crore from the public through the issue of non-convertible secured redeemable debentures.