June 2, 2023: The Securities and Exchange Board of India (Sebi) on June 1, 2023, announced the auction of 17 properties belonging to seven business groups on June 28 to recover investors’ money.
With a total reserve price of Rs 51 crore, the properties belong to MPS Group, Tower Infotech, Vibgyor Group, Prayag Group, Multipurpose BIOS India Group, Waris Finance International Group and Pailan Group of Companies. The firms had raised funds from investors without complying with regulatory norms, which prompted the Sebi to take action. The 17 properties being auctioned include land parcels, storied buildings, flats and a commercial space situated across West Bengal.
Inviting bids, the Sebi said auction of the properties would be conducted through an online mode between 11 AM and 1 PM. Quikr Realty has been engaged by Sebi to assist in the sale of these properties. The regulator said the bidders should make their own independent enquiries regarding encumbrances, title of properties put on auction and claims prior to submitting their bids. Earlier, the Sebi had attached some of their properties after they failed to comply with the directives asking them to refund investors’ money along with interest. In these matters, the markets regulator had also attached demat and bank accounts.
Going by the Sebi orders, MPS Group of companies includes MPS Greenery Developers that collected Rs 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 Rs 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 Rs 61.76 crore. Tower Infotech had raised nearly Rs 46 crore from more than 49,000 investors through issuance of non-convertible debentures (NCDs) and redeemable preference shares between 2005 and 2010.
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Dhwani is a content management expert with over five years of professional experience. She has authored articles spanning diverse domains, including real estate, finance, business, health, taxation, education and more. Holding a Bachelor’s degree in Journalism and Mass Communication, Dhwani’s interests encompass reading and travelling. She is dedicated to staying updated on the latest real estate advancements in India.
Email: dhwani.meharchandani@housing.com
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