Sebi, the market regulator, announced on Thursday that it will auctioned three firms' properties next month in order to recover money fraudulently collected from investors: Infinity Realcon, Bishal Group of Companies, and Sumangal Industries. According to a public notice published by the Securities and Exchange Board of India (Sebi), a total of 26 assets of three companies will be auctioned for a reserve price of more than Rs 21 crore.
Thirteen of the 26 properties are owned by Infinity Realcon, ten by the Bishal Group (Bishal Abasan India Ltd, Bishal Distillers Ld, Bishal Agri-Bio Industries Ltd, Bishal Horticulture and Animal Projects Ltd), and three by Sumangal Industries. These properties in West Bengal comprise land parcels, single-story buildings, a residential building, and a flat.
Sebi has invited bids for the sale of properties in the recovery procedures against all three companies and their promoters and managers. The auction will be organised online on May 30 from 1030 hrs to 1230 hrs.
Adroit Technical Services was appointed to deliver the e-auction service. Before submitting bids, the regulator has instructed bidders to do their own independent inquiries into encumbrances, title of properties offered for sale, and claims, among other things.
From 2009-10 to 2012-13, Infinity Realcon issued redeemable preference shares (RPS) to approximately 25,000 investors, raising over Rs 19 crore. Also, the amount that was raised through the issuance of bonds was Rs 1 crore.
The four Bishal Group firms raised capital by issuing RPS to more than 49 people in violation of public issue regulations.
Bishal Distillers raised Rs 4 crore, while Bishal Agri-Bio Industries and Bishal Horticulture and Animal Projects raised Rs 3 crore and Rs 2.84 crore, respectively. Companies raised the cash between 2006 and 2014.
Also, Bishal Abasan India raised Rs 2.75 crore by issuing RPS in 2011-12, as well as Rs 89 crore through the issue of non-convertible debentures (NCDs) in 2012-14. Sumangal Industries received Rs 85 crore in illegal collective investment schemes (CIS) from investors. The company was operating illegal 'potato purchase' investment schemes that promised investors up to a 100% return in just 15 months
