The Securities and Exchange Board of India (Sebi) on Thursday said it will auction 17 properties belonging to seven business groups including MPS Group, Tower Infotech, and Vibgyor Group on June 28, with a total reserve price of Rs 51 crore, in a bid to recover investors’ money. The firms had raised funds from investors without complying with regulatory norms, which prompted Sebi to take action. The 17 properties being auctioned include land parcels, storied buildings, flats, and a commercial space situated across West Bengal.
Inviting bids, Sebi said auction of the properties will be conducted through online mode between 11 am and 1 pm.
Further, total reserve price has been pegged at Rs 51 crore for the assets and Quikr Realty has been engaged by Sebi to assist in the sale of these properties.
Of the total properties to be auctioned, five belong to MPS Group, four relate to Vibgyor, three pertain to Pailan Group of companies, two belong to Tower Infotech and one each to Multipurpose BIOS India Group, Prayag Group and Waris Finance.
The regulator said the bidders should make their own independent enquiries regarding encumbrances, title of properties put on action and claims, among others prior to submitting their bids.
These firms had raised funds from investors without complying with regulatory norms, which prompted Sebi to take action.
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Earlier, the regulator had attached some of their properties after directives asking them to refund investors' money along with interest did not materialise. In these matters, the markets regulator had also attached demat and bank accounts.
Going by the Sebi orders, MPS Group of companies includes MPS Greenery Developers that collected Rs 1,520 crore from investors through illegal Collective Investment Schemes (CIS). Prayag Infotech had made an offer of redeemable preference shares between 2007-2008 and 2011-12 and mobilised at least Rs 131.37 crore from over 1.57 lakh investors.
Vibgyor Allied Infrastructure had issued optionally fully convertible debentures to 49,562 investors in 2009 and raised Rs 61.76 crore. Tower Infotech had raised nearly Rs 46 crore from more than 49,000 investors through issuance of non-convertible debentures (NCDs) and redeemable preference shares between 2005 and 2010.