On January 10, Sebi will hold an auction for four companies' properties to recoup investor funds
In 2012–2013, GSHP Realtech collected money from 535 people using NCDs, while Infocare Infra made Rs 98.35 lakh by giving NCDs to 90 investors. The regulator had ordered these companies, as well as their promoters and directors, to return the funds obtained from investors through orders issued in 2013, 2015, and 2016. However, the entities didn't return the investors' money, so the regulator started legal action to recover the money.
The market watchdog Sebi announced on Wednesday that it would put up for auction on January 10 the assets of four businesses, including Infinity Realcon and Sumangal Industries, in an effort to recoup money that had been fraudulently obtained from investors. The Securities and Exchange Board of India (Sebi) said in a notice that two further companies, GSHP Realtech Ltd and Infocare Infra Ltd, will have their assets auctioned off. A total of 25 properties owned by the four corporations will be auctioned off with a Rs 12.2 crore reserve price, it was stated. Infinity Realcon owns 16 of these properties, Sumangal Industries owns 5, GSHP Realtech owns 2, and Infocare Infra owns 2. These assets include West Bengal-based flats, single-story buildings, and land parcels and plots.
The recovery proceedings against the four firms and their promoters or directors are seeking bids for the sale of properties. According to Sebi, the auction will be held online on January 10 from 10.30 am to 12.30 pm. The company that will provide the e-auction service is eProcurement Technologies.
Before submitting their bids, the bidders have been instructed by the regulator to conduct their own independent investigations regarding encumbrances, the title of the properties up for auction, and claims, among other things. The other three firms raised capital from investors by issuing securities like non-convertible debentures (NCDs) and redeemable preference shares (RPS) without adhering to regulatory standards, while Sumangal Industries allegedly used illegal collective investment schemes (CIS) to collect money from investors.
From 2009–10 to 2012–13, Infinity Realcon raised roughly Rs 19.32 crore by selling RPS to close to 25,000 investors. Additionally, Rs 1 crore was raised through the issuance of debentures. The illegal "potato purchase" investment schemes offered by Sumangal Industries, which had received Rs 85 crore from investors, promised returns of up to 100% in just 15 months. In 2012–2013, GSHP Realtech collected money from 535 people using NCDs, while Infocare Infra made Rs 98.35 lakh by giving NCDs to 90 investors.
The regulator had ordered these companies, as well as their promoters and directors, to return the funds obtained from investors through orders issued in 2013, 2015, and 2016. However, the entities didn't return the investors' money, so the regulator started legal action to recover the money.
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