Capital markets regulator Sebi on Monday said it will auction 15 properties belonging to Mangalam Agro Products, Sumangal Industries and Falkon Industries India on November 19. The move is part of Sebi’s efforts to recover money collected by these companies from investors in violation of norms.
Ravi Kiran Realty India and Purusattam Infotech Industries are the two other companies whose properties will be auctioned by the markets watchdog.
Properties that will go under the hammer including flats, land with structure and land parcels are located in West Bengal and Odisha.
The properties will be auctioned with a reserve price of Rs 11.89 crore and the auction will be conducted online on November 19 from 11 am to 1 pm, the Securities and Exchange Board of India (Sebi) said in a notice.
Sebi has invited bids for the sale of properties in the recovery proceedings against Mangalam Agro Products, Sumangal Industries, Falkon Industries India, Ravi Kiran Realty India and Purusattam Infotech Industries and their promoters/directors.
Further, Quikr Realty has been engaged by the regulator to assist it in the auction.
In addition, Sebi advised the bidders to make their own independent enquiries regarding the encumbrances, litigations, attachments, acquisition liabilities of the property, title, claim/rights/dues etc. in respect of the properties put on auction, prior to submitting their bids.
Of the 15 properties being put on the block, seven are linked to Mangalam Agro Products, three each are related to Sumangal Industries and Falkon Industries India.
Also, there is one property each of Ravi Kiran Realty India and Purusattam Infotech Industries, the markets watchdog said in the notice.
These companies had collected money from investors without complying with the regulatory norms
Going by Sebi’s earlier orders, Mangalam Agro had raised Rs 11 crore from illegal issuance of secured non-convertible debentures (NCDs) to around 4,820 investors during 2011-2012.
Sumangal had collected Rs 85 crore from investors through illegal collective investment schemes (CIS). Besides, Ravi Kiran raised funds by issuing RPS to 1,176 individuals.
Falkon Industries India Ltd (FIIL) had collected Rs 48.58 lakh by issuing redeemable preference shares to 714 persons in 2009-2010.
