Capital markets regulator Sebi will auction properties of two companies--GSHP Realtech and Ravi Kiran Reality India-- on Apr 16 for a reserve price of over Rs 5.5 crore. The move is a part of Sebi's effort to recover investors' money.
Kolkata-based GSHP Realtech had mobilised money from 535 persons in 2012-13 by issuing Non-Convertible Redeemable Debentures or NCDs, while Ravi Kiran had raised funds by issuing redeemable preference shares (RPS) to 1,176 people.
The two firms had raised funds without seeking approval of the market regulator as required.
Sebi in 2015 and 2016 had ordered GSHP Realtech and Ravi Kiran Reality respectively to refund money collected from investors.
However, the entities failed to return investors' money and consequently the regulator initiated recovery proceedings against them.
In a notice on Thursday, Sebi invited bids for sale of properties in the recovery proceedings against GSHP Realtech Limited and Ravi Kiran Reality India Limited and their respective promoters/directors, through e-auction platform.
In the case of GSHP Realtech, the regulator will auction two properties for a reserve price of Rs 2.88 crore, while it will put on sale four properties at a reserve price of Rs 2.68 crore in the matter of Ravi Kiran Reality.
The auction will be conducted online on April 16, Securities and Exchange Board of India (Sebi) said.
The properties that have been put on sale, include land parcels located in West Bengal.
Sebi said Adroit Technical Services Limited has been engaged by it to assist in the sale of the vehicles through e-auction platform.
The intending bidders should make their own independent enquiries regarding the encumbrances, litigations, attachments, acquisition liabilities of the assets. in respect of the properties put on auction, prior to submitting their bid, Sebi said.
The regulator said that intending bidders need to submit their bids along with an amount equivalent of 10 per cent of the reserve price as earnest money deposit (EMD) for each of the properties.
"The successful bidder shall have to deposit 25 per cent of the successful bid amount (inclusive of EMD amount), immediately after the close of the auction and the balance amount along with 1 per cent of highest bid amount as poundage fee within 15 days from close of auction," it added.