In July 2024, Sebi will put 22 properties owned by seven corporations up for auction.

NEW DELHI: To recoup funds that were improperly taken from investors, market regulator Sebi announced on Monday that it has scheduled 22 properties belonging to seven companies, including the Pailan Group, Vibgyor Group, and GBC Industrial Corp group, for auction on July 8.

Teachers’ Welfare Credit and Holding Group, Annex Infrastructure India Ltd., Waris Group, Tower Infotech Group, and other companies will also have their assets up for auction.

Following directives from the Calcutta High Court, the regulator has started selling the companies’ assets.

A one-man committee headed by Justice Sailendra Prasad Talukdar has been tasked with selling the companies’ assets and paying back the investors. The action is a component of Sebi’s attempt to get investors’ money back.

The Securities and Exchange Board of India (Sebi) has released a notice regarding the properties comprising plots and an apartment in West Bengal. The properties will be auctioned off at a reserve price of Rs 45.47 crore.

The regulator has hired Adroit Technical Services Ltd to help with the properties’ sale.

The Pailan Group owns ten of the twenty-two properties, followed by the Vibgyor Group with four, the GBC Industrial Corp group with three, the Tower Infotech group with two, and the Waris Group, Annex Infrastructure India, and Teachers Welfare Credit and Holding Group with one each.

The committee has asked the markets watchdog to solicit offers from potential buyers for the properties up for sale. According to Sebi, the online auction will take place on July 8 from 1 am to 1 pm.

These companies had taken investor funds without adhering to regulatory standards.

The Pailan Group, which consists of Pailan Park Development Authority Ltd and Pailan Agro India Ltd, raised more than Rs 98 crore from the general public by issuing non-convertible secured redeemable debentures.

In 2009, Vibgyor Allied Infrastructure collected Rs 61.76 crore by issuing fully convertible debentures with an option.

Additionally, between 2005 and 2010, Tower Infotech raised almost Rs 46 crore by issuing redeemable preference shares and non-convertible debentures.