SEBI's upcoming auction of eight properties owned by HBN Dairies aims to recoup funds for investors who suffered losses in the company's illegal investment scheme. Promising high returns through cattle purchases and ghee sales, HBN Dairies failed to deliver, prompting SEBI's intervention. Properties on auction include a shopping mall with a multiplex, a hotel, and commercial shops spread across New Delhi, Punjab, Madhya Pradesh, Gujarat, and Maharashtra. The total reserve price is set at INR 67.70 crore, offering investors a potential pathway to partial recovery, albeit with caution about final sale prices meeting expectations and the distribution of proceeds among affected parties.
Hope for a partial recovery may be on the horizon for investors who lost money in the HBN Dairies collective investment scheme. The Securities and Exchange Board of India (SEBI) is auctioning eight properties owned by the company in an attempt to recoup funds for investors.
HBN Dairies had lured investors with a scheme promising high returns through cattle purchases and ghee sales. However, the company failed to deliver on its promises, leaving many investors with significant financial losses. Following an investigation, SEBI determined the scheme to be illegal and moved to recover funds.
The auction, scheduled for August 13th, will offer a variety of properties. These include a shopping mall with a multiplex, a hotel, plots of land, and commercial shops. The properties are located across several states in India, including New Delhi, Punjab, Madhya Pradesh, Gujarat, and Maharashtra. The total reserve price for all the properties is INR 67.70 crore.
While the auction represents a potential avenue for recouping some losses, it's important to be realistic. The final sale price of the properties may not reach the reserve price, and the proceeds will need to be divided among all the affected investors. This means individual investors may not receive a full refund.
Investors interested in participating in the auction should exercise caution. It's crucial to thoroughly research the properties and understand any potential liabilities or encumbrances associated with them. Consulting with a financial advisor experienced in such matters can be helpful in making informed decisions.
The HBN Dairies case highlights the importance of careful due diligence before investing in any scheme promising high returns. Investors should always verify the legitimacy of a scheme with SEBI and avoid investing in unregistered or unregulated products.
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