SEBI puts a fullstop to 'illegal money' & arranges auction to sell 22 properties of seven companies

The Securities and Exchange Board of India (Sebi) announced on Monday that it has scheduled the auction of 22 properties belonging to seven companies, such as Pailan Group, Vibgyor Group, and GBC Industrial Corp group, on July 10 in order to reclaim funds unlawfully obtained from investors.

Additional companies, including Tower Infotech Group, Waris Group, Teachers' Welfare Credit and Holding Group, and Annex Infrastructure India Ltd., will also have their properties auctioned.

Justice Sailendra Prasad Talukdar has been designated as the sole committee member responsible for liquidating the assets of the companies and reimbursing the investors. This action is a component of Sebi's initiative to retrieve the funds of the investors. 

The regulatory body has commenced the procedure for the disposal of the companies' assets in accordance with the directives issued by the Calcutta High Court.

The assets consist of land parcels and an apartment in West Bengal, which are set to be auctioned with a minimum price of Rs.45.47 crore, as per a notification released by the Securities and Exchange Board of India (Sebi).

Adroit Technical Services Ltd has been appointed by the regulatory body to aid in the marketing of the properties.

Out of the 22 properties, 10 are owned by Pailan Group, four by Vibgyor Group, three by GBC Industrial Corp, two by Tower Infotech Group, and one each by Waris Group, Annex Infrastructure India, and Teachers Welfare Credit and Holding Group.

The watchdog of the markets on behalf of the committee is inviting bids for the sale of properties from the bidders.

According to the statement of SEBI the auction will start from 11p.m and will continue till 1p.m on 8th July.

Pailan Group, consisting of Pailan Agro India Ltd and Pailan Park Development Authority Ltd, managed to accumulate more than Rs. 98 crore from investors by issuing non-convertible secured redeemable debentures, all while disregarding regulatory requirements.

Vibgyor Allied Infrastructure had released optionally fully convertible debentures in 2009, garnering a total of Rs.61.76 crore. Additionally, Tower Infotech managed to secure close to Rs. 46 crore by issuing non-convertible debentures and redeemable preference shares from 2005 to 2010.