The Securities and Exchange Board of India (SEBI) is set to auction 19 properties of KBCL India Ltd to recover over INR 118.69 crore raised through an illegal Collective Investment Scheme (CIS). SEBI found that KBCL India Ltd, formerly Kalpataru Biotech Corporation, operated the CIS without necessary approvals. A restraining order in 2014 halted their fundraising activities. The auction, managed by C1 India, is scheduled for July 16, 2024, with a reserve price of INR 3.54 crore. This action underscores SEBI's commitment to protecting investors and recovering funds obtained through non-compliant means, emphasizing the need for investor vigilance.
The Securities and Exchange Board of India (SEBI), the capital markets regulator, is taking a strong stance against illegal fundraising by auctioning 19 properties belonging to KBCL India Ltd. This action aims to recover over INR 118.69 crore collected from investors through non-compliant means.
SEBI's investigation found that KBCL India Ltd, formerly known as Kalpataru Biotech Corporation, was running a Collective Investment Scheme (CIS) without the necessary approvals and registration from the regulatory body. This scheme allowed them to raise funds from multiple investors. In May 2014, SEBI had issued a restraining order prohibiting KBCL and its directors, Rakesh Kumar, Vishvnath Pratap Singh, and Shashi Kant Mishra, from raising any further money from the public.
The upcoming auction features 19 properties for sale, including various land parcels and a specific plot in Uttar Pradesh. The total reserve price for these properties is set at INR 3.54 crore. The auction is scheduled to take place on July 16, 2024, and will be conducted online from 11 am to 1 pm. C1 India, an e-auction service provider, will manage the auction process.
SEBI initiated the asset sale process after KBCL India Ltd and its directors failed to return the collected funds to investors. The exact number of investors impacted is not specified; however, SEBI's investigation revealed that KBCL had mobilized funds exceeding INR 118.69 crore by March 31, 2012. The proceeds from the auction will be used to recover these funds for the investors.
The auction of KBCL's properties serves as a critical reminder for investors to exercise caution when investing their money. Thorough research into any investment opportunity is essential. Investors should ensure the company complies with all regulations and has the necessary licenses before investing. This SEBI action demonstrates their commitment to protecting investors and recovering funds obtained illegally. It highlights the importance of investor vigilance and the consequences faced by companies that engage in illegal fundraising practices.
Advertisement
Facebook
Whatsapp
