Sebi Auctions 19 Properties of 7 Companies on August 12

New Delhi, Jul 14 (PTI) Markets regulator Sebi will auction 19 properties belonging to seven companies including, Mangalam Agro Products, Sun Plant Business Ltd and Sumangal Industries on August 12, according to a notice.

The move is part of Sebi's efforts to recover money illegally collected by these companies from investors.

Sunheaven Agro India, Ravi Kiran Realty India Ltd, Jivan Sathi Dream Projects and Purusattam Infotech Industries are the other companies whose properties will be auctioned by the markets watchdog.

Properties that will go under the hammer including land with building structure, flats, land parcels and land with structures are located in West Bengal and Odisha.

These properties will be auctioned for a reserve price of Rs 20.74 crore, the Securities and Exchange Board of India (Sebi) said in a notice on July 10.

The regulator said the auction will be conducted online on August 12 from 11 am to 1 pm.

Sebi invited bids for sale of properties in the recovery proceedings against Sumangal Industries, Sunheaven Agro India, Ravikiran Realty India, Mangalam Agro Products, Purusattam Infotech Industries, Jivan Sathi Dream Projects and Sun Plant Business and their promoters/ directors.

Further, Adroit Technical Services has been engaged by Sebi to assist it in the auction for the sale of properties.

In addition, Sebi advised the bidders to make their own independent enquiries regarding the encumbrances, litigations, attachments, of the property, title, claim/rights/dues etc, in respect of the properties put on auction, prior to submitting their bid.

Of the 19 properties being put on the block, seven are linked to Mangalam Agro Products, four to the Sun Plant Business Ltd, three related to Sumangal Industries and two properties of Jivan Sathi Dream Projects.

Also, there is one property each of Sunheaven Agro India, Ravikiran Realty India and Purusattam Infotech Industries, the markets watchdog said in the notice.

These companies had collected money from investors without complying with the market norms.

Going by Sebi's earlier orders, Sunheaven allotted Redeemable Preference Shares (RPS) to about 7,772 investors and mobilised Rs 11.54 crore between 2009-10 and 2012-13. Besides, RaviKiran raised funds by issuing RPS to 1,176 individuals.

Mangalam Agro had raised Rs 11 crore from illegal issuance of secured non-convertible debentures (NCDs) to around 4,820 investors during 2011-2012, while Sun Plant Business had collected Rs 4.17 crore from 2005 to 2008.

Sumangal had collected Rs 85 crore from investors through illegal collective investment schemes (CIS).