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In a recent development from New Delhi, the Securities and Exchange Board of India (SEBI) has announced its intention to auction nine properties tied to Orion Industries Ltd and the Rakhal Bharoti group of companies. This decision has been taken in an effort to recover the funds raised from investors by these entities. The properties slated for auction comprise land parcels situated in West Bengal and Jharkhand, with a cumulative reserve price estimated at approximately Rs 9 crore.
The online auction is scheduled to take place on November 20, running from 10:30 AM to 12:30 PM, and will be facilitated by Quikr Realty Ltd. Of the nine properties set to be auctioned, seven are associated with the RB Group of companies, which encompasses Rakhal Bharoti Fish and Food Processing Ltd and R B Horticulture and Animal Project Ltd. The remaining two properties are connected to Orion Industries.
This action comes in the wake of repeated directives urging these companies to refund investors' money, along with accrued interest, which had not been adhered to. These firms had garnered investments without complying with the regulatory norms in place.
SEBI has advised prospective bidders to conduct their own independent investigations into any encumbrances, property titles up for auction, and related claims before submitting their bids.
Based on SEBI's directives, Orion Industries had amassed Rs 5.46 crore between 2011 and 2013 by issuing redeemable preference shares to nearly 4,200 individuals, all while failing to adhere to the public issue norms stipulated under the Companies Act. In a similar fashion, Rakhal Bharoti Fish and Food Processing Ltd had raised Rs 11.4 lakh through the issuance of Secured Redeemable Debentures to 83 investors during 2012-13 and 2013-14. Additionally, RB Horticulture and Animal Project had mobilized funds through the issuance of redeemable preference shares.
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