January 12, 2024: In a significant move to recover funds illegitimately collected from investors, the Securities and Exchange Board of India (Sebi) on January 11, 2024, declared the auction of 30 properties belonging to six companies. The auction will be held on February 13, 2024, with a reserve price set at approximately Rs 30 crore.
The companies facing the auction include Mangalam Agro Products, Purusottam Infotech Industries, Bishal group of companies, NVD Solar, Jivan Sathi Dream Projects and Sun Plant Business. The properties up for auction comprise plots, land parcels, land with building structures and flats situated in Odisha and West Bengal, collectively valued at a reserve price of Rs 29.97 crore.
To facilitate the auction process, Adroit Technical Services has been enlisted by the Sebi. The online auction is scheduled for February 13, 2024, from 11 AM to 1 PM. The Sebi has urged bidders to conduct independent enquiries into encumbrances, property titles, litigations and claims related to the auctioned properties before submitting their bids.
Among the 30 properties listed, Mangalam Agro Products accounts for 10, Bishal group of companies for eight, directors of NVD Solar for five, Sun Plant Business for four, Jivan Sathi Dream Projects for two and Purusattam Infotech Industries for one. The targeted companies had raised funds from investors without adhering to regulatory norms.
Mangalam Agro Products, for instance, had garnered Rs 11 crore through the illegal issuance of secured Non-Convertible Debentures (NCDs) from approximately 4,820 investors during 2011-2012. Similarly, Sun Plant Business had collected Rs 4.17 crore between 2005 and 2008, while Bishal Distillers, Bishal Agri-Bio Industries and Bishal Horticulture and Animal Projects had mobilised funds ranging from Rs 2.84 crore to Rs 4 crore between 2006 and 2014. The auction aims to recover these unlawfully obtained funds and restore regulatory compliance.
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