Sebi will organise an auction for 66 Saradha Group properties on April 11.

NEW DELHI: The market watchdog Sebi stated on Monday that it would auction off 66 Saradha Group properties on April 11 for a reserve price of Rs 32 crore in an effort to collect money that the company had defrauded the public of through deceptive business practices.

According to a notice from the Securities and Exchange Board of India (Sebi), the properties up for auction include land tracts in West Bengal.

The regulator announced that the e-auction will take place on April 11, 2023, between 11 am and 1 pm. These properties’ combined reserve prices are estimated to be around 32 crore rupees.

Sebi has hired C1 India as the provider of the e-auction and hired Quikr Realty to help it sell the properties.

The change occurred as a result of the Calcutta High Court’s judgment, which was issued in June 2022 and instructed Sebi to proceed with the auction of Saradha Group of Companies properties. It was mandated that the full exercise be finished in three months.

When it failed in April 2013, the Saradha Group, a group of more than 239 private companies, is said to have operated chit fund operations in West Bengal, Assam, and Odisha and raised close to Rs 4,000 crore from 1.7 million depositors.

The regulator reportedly recommended bidders independently look into the property’s encumbrances, lawsuits, attachments, and acquisition of liabilities before completing their bid, per the notice.

“No third-party participation, such as that of an authorized representative or agent, is permitted; the buyer must engage in the e-auction on his own behalf. Any fees or expenses related to putting the property in his or her name must be covered by the winning bidder. All taxes must be paid by the purchaser,” A notice was posted.

The regulator stated in September 2022 that 69 properties owned by the Saradha Group of Companies would be put up for auction on November 1 with a reserve price of Rs 30 crore.