SEBI To Auction 28 Properties At Rs 28.66 Crore Next Month - Details

The Securities and Exchange Board of India (SEBI) has announced plans to auction 28 properties from five companies, including Bishal Group, Sumangal Industries, and Ravi Kiran Realty India, as part of its ongoing efforts to recover funds that were illegally collected from investors. The auction will take place online on January 27, 2025, between 11 AM and 1 PM, with a reserve price set at Rs 28.66 crore.

Properties Under the Hammer
The properties being auctioned include a variety of real estate assets such as flats, residential properties, land parcels, and plots, located in West Bengal and Odisha. SEBI has appointed Adroit Technical Services to assist with the sale of the properties. Bidders have been urged to independently verify the legal status, encumbrances, and claims related to the properties before submitting their bids.

Background of the Companies Involved
The auctioned properties belong to companies that mobilized funds illegally from investors without adhering to market regulations. Among the five companies involved, Bishal Group is linked to the largest number of properties, with 17 assets up for auction. Mangalam Agro Products has six properties, while Sumangal Industries has three. Purusattam Infotech Industries and Ravi Kiran Realty India each have one property on the block. These firms raised money through fraudulent schemes, including the illegal issuance of secured non-convertible debentures (NCDs) and collective investment schemes (CIS). For instance, Mangalam Agro Products raised Rs 11 crore through NCDs, while Sumangal Industries collected Rs 85 crore via CIS. Bishal Group companies and Ravi Kiran Realty also mobilized significant funds in similar illegal schemes.

Recovery Efforts by SEBI
SEBI’s auction of these properties is part of a broader effort to recover the funds and compensate the investors who were defrauded. The regulator's actions are in line with its mandate to protect the interests of investors and ensure market integrity.