The Securities and Exchange Board of India (SEBI) has taken strict action against three companies that illegally raised money by luring people. In order to get back the money of investors, now the Securities and Exchange Board of India will auction the properties of these three companies. The loss of investors will be compensated by the money received from the auction.
A total of 15 properties will be auctioned in this auction by SEBI. The auction will be online and will be held on May 11 from 10.30 am to 12.30 am. SEBI has given the responsibility of e-auction to Adroit Technical Services. SEBI action is going on against these companies since 2014.
Property of these companies will be auctioned
The Securities and Exchange Board of India (SEBI) will auction a total of 15 properties of Sun Plant Agro, Sun Plant Business and Remac Realty on May 11. Sun Plant Business Company has the maximum property out of 15 properties. 9 properties of the company will be auctioned. Four properties of Sun Plant Agro and two properties of Remac Realty will be auctioned online. The bidders participating in the SEBI auction can check these properties before submitting the bids.
Why is the auction happening?
These companies had raised funds from investors illegally. They collected money by showing false propaganda to these companies and then did not return the money of the investors. Now SEBI is auctioning the properties of these companies to get the money of the trapped investors. SEBI said in a notice that these properties include plots of land and flats spread over West Bengal.
Significantly, SEBI had ordered Sun Plant Agro to return the money of the company’s investors along with interest. However, if the company did not comply with the SEBI order, SEBI had attached some assets of Sun Plant Agro earlier as well. In December 2014, attachment proceedings were initiated against Sun Plant Agro for recovery of Rs 69.34 crore. In December 2015, SEBI ordered recovery of Rs 5.76 crore against Sun Plant Business.