Last week, the Securities Exchange Board of India (SEBI) announced that it will sell 22 properties owned by MPS Group, Tower Infotech, and four other entities at auction on March 3 for a reserve price of Rs 91 crore to recover investors' money. The regulator has placed the properties of Vibgyor Group, Prayag Group, Multipurpose BIOS India Group, and Waris Finance International Group on block in addition to MPS Group and Tower Infotech. These businesses have obtained money from investors without adhering to legal requirements.
The Securities and Exchange Board of India (SEBI) announced in a notice that the 22 properties up for auction which are spread out across West Bengal comprises of land parcels, multi-story buildings, flats, and a commercial space. SEBI also invited bids and announced that the auction of the properties would take place online on March 3 from 11 am to 1 pm.
Of the 22 properties up for auction, 11 are owned by the MPS Group of Companies, three by the Multipurpose BIOS India Group, two by the Prayag Group of Companies, two by the Tower infotech Group of Companies, and one by the Waris Finance International Group.
The total reserve price for these properties is set at Rs 91 crore, and SEBI has hired Quikr Realty to help it sell the assets. The regulator advised the bidders to do their own independent investigations into the encumbrances, title of the properties up for sale and claims among other things prior to placing their bids.
A few of their properties had previously been attached by SEBI after orders requiring them to return investors' money plus interest were ignored. The markets regulator has also attached bank and Demat accounts in this case.
According to SEBI's directives one of the firms in the MPS Group is MPS Greenery Developers which illegally obtained Rs 1,520 crore from investors through Collective Investment Schemes (CIS). Prayag Infotech offered redeemable preference shares between 2007-2008 and 2011-2012 and more than 1.57 lakh investors contributed at least Rs 131.37 crore. In order to raise Rs 61.76 crore Vibgyor Allied Infrastructure issued optionally fully convertible debentures to 49,562 investors.
Tower Infotech issued redeemable preference shares and non-convertible debentures (NCDs) raising roughly Rs 46 crore from over 49,000 investors between 2005 and 2010.
Multi-Purpose Bios raised Rs 5.97 crore through redeemable preference shares from more than 1,460 individuals between the financial years 2007–08 and 2011–12 and Waris Finance generated Rs 5.12 crore by issuing NCDs between 2010–12.
These five group firms issued securities to more than 49 people without abiding by the Companies Act of 1956's rules in order to participate in fund-raising activities.
The regulator announced in a separate notice that it will hold an online auction for a flat owned an Uma Saminathan on February 23 with a reserve price of Rs 51.5 lakh. The apartment is in Tamil Nadu. The Pyramid Saimira Theatre Ltd. case has started the recovery processes against Saminathan.
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