SEBI plans to auction 16 properties from eight companies, including Vibgyor Group and Pailan Group, on January 30 to recover funds collected illegally from investors. The other firms involved are Kolkata Weir Industries, Tower Infotech, GBC Industrial Corp, Teachers' Welfare Credit and Holding, Hahnemann Herbal, and Annex Infrastructure India Ltd. SEBI initiated the asset sale process following orders from the Calcutta High Court. Justice Sailendra Prasad Talukdar will oversee the liquidation. The auction, with a reserve price of Rs 47.75 crore, will be facilitated by Quikr Realty. The move aims to fulfill SEBI's commitment to recovering investors' money from companies that violated regulatory norms.
The Securities and Exchange Board of India (SEBI) has scheduled an auction for 16 properties belonging to eight companies, including Vibgyor Group and Pailan Group, on January 30, with the aim of recovering funds illicitly collected from investors. Other companies involved in the auction are Kolkata Weir Industries, Tower Infotech group, GBC Industrial Corp group, Teachers' Welfare Credit and Holding group, Hahnemann Herbal group, and Annex Infrastructure India Ltd. This asset sale follows orders from the Calcutta High Court, and Justice Sailendra Prasad Talukdar has been appointed to oversee the liquidation process. SEBI has collaborated with Quikr Realty to auction these land parcels, plots, and apartments in West Bengal with a combined reserve price of Rs 47.75 crore.
SEBI's move is part of a broader initiative to retrieve money collected illegally from investors by these companies that failed to comply with regulatory norms. SEBI, acting on behalf of the court-appointed committee led by Justice Talukdar, is inviting bids for the sale of these properties through an online auction scheduled for January 30, running from 11 am to 1 pm.
The listed properties include five from the Vibgyor Group, three from Tower Infotech, two each from Pailan Group and GBC Industrial Corp, and one each from Kolkata Weir Industries, Teacher's Welfare Credit and Holding group, Hahnemann Herbal group, and Annex Infrastructure India Ltd.
To assist in the sale of these properties, SEBI has enlisted the services of Quikr Realty. The regulator has emphasized that potential bidders must conduct their own independent inquiries regarding encumbrances, litigations, property titles, and claims associated with the assets before submitting bids.
The companies in question engaged in fund-raising activities from investors without adhering to regulatory norms. Vibgyor Allied Infrastructure, for instance, issued optionally fully convertible debentures in 2009, raising Rs 61.76 crore. Similarly, Hahnemann Herbals Ltd raised funds by issuing redeemable preference shares worth Rs 23.18 crore between 2008-09 and 2012-13. Pailan Group, consisting of Pailan Agro India Ltd and Pailan Park Development Authority Ltd, mobilized over Rs 98 crore from the public through the issue of non-convertible secured redeemable debentures.
Tower Infotech raised nearly Rs 46 crore through the issuance of non-convertible debentures and redeemable preference shares between 2005 and 2010. Hahnemann Herbals also mobilized Rs 23.18 crore between 2008-09 and 2012-13.
SEBI's initiative underscores its commitment to protecting investors and maintaining the integrity of the securities market by ensuring stringent actions against companies violating regulatory norms. The online auction serves as a critical step in the process of recovering funds and providing some relief to affected investors.
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