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The Securities and Exchange Board of India (SEBI) has announced that it will auction 66 properties belonging to the Saradha Group on April 11, 2023. The reserve price for these properties is set at Rs 32 crore, and the auction will be conducted between 11 am and 1 pm. The properties up for auction include land parcels located in West Bengal. SEBI has appointed Quikr Realty to assist in the sale of these properties, while C1 India will be the e-auction provider.
The decision to auction off these properties comes after the Calcutta High Court passed an order in June 2022, directing SEBI to proceed with the auction of Saradha Group's properties within three months. The Saradha Group was a consortium of over 239 private companies that allegedly ran chit fund operations in West Bengal, Assam, and Odisha, raising around Rs 4,000 crore from 1.7 million depositors before it collapsed in April 2013.
SEBI has warned bidders that they must conduct their own independent inquiries regarding the encumbrances, litigations, attachments, and acquisition of liabilities of the property prior to submitting their bids. Additionally, SEBI has stated that the successful bidder will bear the charges/fee payable for the transfer of the property in their name, and all taxes will be borne by the purchaser.
In September 2022, SEBI announced that it would auction 69 properties belonging to the Saradha Group on November 1 at a reserve price of Rs 30 crore. The total value of the properties being auctioned by SEBI now stands at Rs 62 crore. The auction of these properties is part of SEBI's ongoing efforts to recover money raised by the Saradha Group from the public through illicit schemes. The regulator has been working to bring those responsible for the scam to justice and to provide restitution to those who lost money in the scheme.
SEBI has been cracking down on chit fund operations across the country in recent years, as they are often found to be fraudulent in nature. The regulator has taken a tough stance on these operations, as they have been known to prey on vulnerable members of society, particularly those who are less financially literate.
The auction of the Saradha Group's properties is expected to generate significant interest from investors and developers, particularly those looking to expand their portfolios in West Bengal. The state has seen significant economic growth in recent years, and the demand for commercial and residential properties has been on the rise.
Overall, the auction of the Saradha Group's properties is a positive development in SEBI's efforts to combat fraud in the chit fund industry. While it may take some time to fully recover the money lost by the victims of the Saradha Group's schemes, the auction of these properties is an important step towards achieving that goal.
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