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Business News/ News / India/  Today, SEBI will auction properties of 6 companies: All you need to know
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Today, SEBI will auction properties of 6 companies: All you need to know

The total reserve price of the SEBI auction, involving six companies, on March 3 is ₹91 crore.

Mumbai: SEBI chairperson Madhabi Puri Buch addresses a press conference, at SEBI head office in Mumbai, Tuesday, Dec. 20, 2022. (PTI Photo) (PTI)Premium
Mumbai: SEBI chairperson Madhabi Puri Buch addresses a press conference, at SEBI head office in Mumbai, Tuesday, Dec. 20, 2022. (PTI Photo) (PTI)

The Securities and Exchange Board of India (SEBI) will be auctioning off 22 properties belonging to six companies including MPS Group, Tower Infotech, Vibgyor Group, Prayag Group, Multipurpose BIOS India Group and Waris Finance International Group, with a total reserve price of 91 crore, in a bid to recover investors' money. The auction will take place on March 3 through online mode from 11 am to 1 pm.

The properties being auctioned include land parcels, storied buildings, flats, and a commercial space situated across West Bengal, according to SEBI. Of the 22 properties, 11 belong to MPS Group, three each belong to Multipurpose BIOS India Group and Vibgyor Group, two each belong to Prayag Group and Tower Infotech Group, and one property belongs to Waris Finance International Group. Quikr Realty has been engaged by SEBI to assist in the sale of these properties.

These companies had raised funds from investors without complying with regulatory norms, prompting SEBI to take action. Earlier, SEBI had attached some of their properties after directives asking them to refund investors’ money along with interest did not materialise. In this matter, the markets regulator had also attached demat and bank accounts.

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Going by SEBI's orders, MPS Group of companies includes MPS Greenery Developers that collected 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 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 61.76 crore.

Tower Infotech had raised nearly 46 crore from more than 49,000 investors through issuance of non-convertible debentures (NCDs) and redeemable preference shares between 2005 and 2010. Multi Purpose Bios collected 5.97 crore from more than 1,460 people through redeemable preference shares between the financial year 2007-08 and 2011-12, and Waris Finance had raised 5.12 crore by issuing NCDs from 2010-12.

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SEBI has stated that the bidders should make their own independent enquiries regarding the encumbrances, title of properties put on auction and claims, among others, prior to submitting their bids.

SEBI has also announced that it will auction a flat belonging to Uma Saminathan on February 23 for a reserve price of 51.5 lakh through online mode. The flat is located in Tamil Nadu. The recovery proceedings have been initiated against Saminathan in the matter of Pyramid Saimira Theatre Ltd.

(With agency inputs)

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ABOUT THE AUTHOR
Sounak Mukhopadhyay
Sounak Mukhopadhyay, who also goes by the name Sounak Mukherjee, has been producing digital news since 2012. He's worked for the International Business Times, The Inquisitr, and Moneycontrol in the past. He's also contributed to Free Press Journal and TheRichest with feature articles. He covers news for a wide range of subjects including business, finance, economy, politics and sports. Before working with digital news publications, he worked as a freelance content writer.
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Published: 03 Mar 2023, 08:09 AM IST
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