Sebi Extends Auction of Bishal, NVD Properties to Dec 21

New Delhi, Dec 6 (PTI) Capital markets regulator Sebi on Wednesday extended till December 21 the date of auction of 13 properties belonging to Bishal Group of companies and NVD Solar in order to recover money illegally collected by these firms from investors.

Earlier, the auction was scheduled for December 12.

"Considering that the interested bidders expressed for more time to submit EMD (Earnest Money Deposit), as intimated by Adroit Technical Services Private Ltd, it has been decided to extend the last date of submission of the bids and date of auction," Sebi said in a notice.

The last date for submission of bids and remittance of EMD by successful bidders has been fixed at December 19 while the same for the auction is December 21. The auction will be conducted online from 10.30 am to 12.30 pm on the day, it added.

The Securities and Exchange Board of India (Sebi), in its auction notice last month, stated that the properties will be auctioned at a reserve price of over Rs 17 crore.

Of the 13 properties, eight are related to Bishal Group of companies (Bishal Abasan India Ltd, Bishal Distillers Ltd, Bishal Agri-Bio Industries Ltd, Bishal Horticulture and Animal Projects Ltd) and five belong to NVD Solar. These properties include land parcels and flats in West Bengal.

According to the regulator, the four firms had mobilised funds by issuing Redeemable Preference Shares (RPS) to more than 49 people without complying with the public issue norms.

While Bishal Distillers had raised Rs 4 crore, Bishal Agri-Bio Industries and Bishal Horticulture and Animal Projects had mobilised Rs 3 crore and Rs 2.84 crore, respectively. All these funds were mobilised between 2006 and 2014.

Also, Bishal Abasan India raised Rs 2.75 crore by allotting RPS during 2011-12, apart from mopping up Rs 89 crore through the issuance of non-convertible debentures during 2012-14.

NVD Solar had raised Rs 595 crore through the issuance of fresh equity shares to more than 1 lakh entities during 2012-13 without complying with the regulatory provisions applicable for a public issue.