SEBI to auction properties of 3 companies on November 10

NEW DELHI: Markets regulator Sebi on Friday said it will auction the properties of three companies -- Sumangal Industries, GSHP Realtech and Infocare Infra Ltd -- on November 10, to recover money that was illegally raised from investors.

A total of ten properties of three companies will be auctioned at a reserve price totalling Rs 7.68 crore, according to a public notice issued by the Securities and Exchange Board of India (Sebi).

Of the five properties relate to Sumangal Industries Ltd, three belong to Infocare Infra Ltd and the remaining relate to GSHP Realtech Ltd.

These properties include land parcels, single-storey buildings and a flat located in West Bengal.

Inviting bids for the sale of properties in the recovery proceedings against the three companies and their promoters and directors, Sebi said the auction will be conducted online on November 10, from 1030 hours to 1230 hours.

eProcurement Technologies Limited has been appointed as the e-auction service provider.

The regulator has asked the bidders to make their own independent enquiries regarding the encumbrances, title of properties put on action and claims, among others, before submitting their bids.

A Sebi probe had found that GSHP Realtech mobilised money from 535 persons in 2012-13 by issuing Non-Convertible Redeemable Debentures (NCDs), without complying with the regulatory norms, while Infocare Infra mopped-up Rs 98.35 lakh by allotting non-convertible debentures to 90 investors.

Also, Sumangal Industries had collected Rs 85 crore from investors through illegal collective investment schemes (CIS). The firm was running illegal 'potato purchase' investment schemes promising up to 100 per cent gain in just 15 months to investors.

Sebi, in 2013 and 2016, had ordered Sumangal and GSHP Realtech, Infocare Infra Projects as well as their promoters and directors, respectively to refund the money raised from investors.

However, the entities failed to return investors' money and consequently the regulator initiated recovery proceedings against them. In August, Sebi auctioned properties of Sumangal Industries and GSHP Realtech for a reserve price totalling Rs 9.8 crore.