In order to recoup funds fraudulently obtained from investors, capital markets regulator Sebi said on Wednesday that it will auction 22 properties owned by the Bishal Group of Companies and NVD Solar on August 14.
The Securities and Exchange Board of India (Sebi) has announced that the properties would be auctioned off at a reserve price of close to Rs 37 crore.
Five of the 22 assets are related to NVD Solar, while 17 are related to the Bishal Group of Companies (Bishal Abasan India Ltd, Bishal Distillers Ld, Bishal Agri-Bio Industries Ltd, and Bishal Horticulture and Animal Projects Ltd).
These real estate holdings include plots of land, apartments, and a house in West Bengal.
Sebi invited bids for the sale of assets involved in the legal actions taken to collect money owed to the firms, their promoters, and their directors. The auction will be held online on August 14 from 10:30 am to 12:30 pm, according to Sebi.
The e-auction service provider has been selected as Adroit Technical Services.
Before making their offers, the bidders have been instructed by the regulator to conduct their own independent investigations about encumbrances, the title of the properties up for sale, and claims, among other things.
The agency claims that the four entities raised money by distributing Redeemable Preference Shares (RPS) to more than 49 individuals without abiding by the rules for public offerings.
Bishal Distillers had raised $4 million, Bishal Agri-Bio Industries had raised $3 million, and Bishal Horticulture and Animal Projects had raised $2.84 million. The businesses raised the funding between 2006 and 2014.
Additionally, during the 2011–12 fiscal year, Bishal Abasan India raised Rs 2.75 crore via the allocation of RPS. From 2012–14, the company also raised Rs 89 crore through the issuing of Non-Convertible Debentures (NCDs).
Through the issuing of new equity shares to more than 1 lakh organizations during the 2012–2013 fiscal year, NVD Solar collected Rs 595 crore without adhering to the legal requirements for a public offering.