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In a significant move to recover money illegally collected from investors, the Securities and Exchange Board of India (SEBI) announced that it will auction 30 properties belonging to six companies. The auction, scheduled for February 13, aims to retrieve funds from entities that had raised capital without complying with regulatory norms.
The companies facing the auction include Mangalam Agro Products, Bishal group of companies, Purusattam Infotech Industries, NVD Solar Ltd, Sun Plant Business, and Jivan Sathi Dream Projects. Sebi has set a reserve price of nearly Rs 30 crore for the properties, which include land parcels, plots, land with building structures, and flats situated in West Bengal and Odisha.
This initiative is part of SEBI's broader effort to safeguard investors' interests. Adroit Technical Services has been enlisted by the regulator to assist in the sale of these properties, emphasizing transparency in the recovery process.
Among the companies involved, Mangalam Agro Products raised Rs 11 crore through the unauthorized issuance of secured Non-Convertible Debentures (NCDs) between 2011-2012, impacting around 4,820 investors. Similarly, Sun Plant Business collected Rs 4.17 crore from 2005 to 2008, while Bishal Distillers, Bishal Agri-Bio Industries, and Bishal Horticulture and Animal Projects mobilized funds between 2006-2014.
NVD Solar stands out for raising a substantial Rs 595 crore through the issuance of fresh equity shares during 2012-13 from over 1 lakh entities, all without adhering to regulatory provisions applicable for a public issue.
The online auction, scheduled from 11 am to 1 pm on February 13, will see 10 properties related to Mangalam Agro Products, eight to Bishal group of companies, five linked to directors of NVD Solar, four of Sun Plant Business Ltd, two related to Jivan Sathi Dream Projects, and one associated with Purusattam Infotech Industries.
SEBI has urged potential bidders to conduct independent inquiries into the properties' encumbrances, litigations, and title before participating. This proactive measure by SEBI not only seeks financial recovery but also underscores the importance of adherence to regulatory norms to protect investors in the financial market.
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