To recover the money collected illegally from investors, capital market regulator SEBI is going to auction the assets of five companies on 27 January 2025. The properties to be auctioned in this auction include flats, residential properties and flats, land parcels, plots and land with building structures located in West Bengal and Odisha. According to PTI news, the properties will be auctioned at a reserve price of Rs 28.66 crore. These properties are located in West Bengal and Odisha.
The properties of these companies will be auctioned

According to the news, the names of the companies whose properties will be auctioned are - Vishal Group and Sumangal Industries, Ravi Kiran Realty India, Mangalam Agro Products and Purushattam Infotech Industries and others. The Securities and Exchange Board of India (SEBI) had issued a notice in this matter on December 19. SEBI invited bids for the sale of properties in recovery proceedings against five firms and their promoters/directors.

The auction will be held from 11 a.m. to 1 p.m.

The regulator has appointed Adroit Technical Services to assist in the sale of the properties. Of the 28 properties put up for auction, 17 belong to Bishal Group, 6 to Mangalam Agro Products, 3 to Sumangal Industries and 1 each to Purushattam Infotech Industries and Ravi Kiran Realty India. The auction will be conducted online on January 27, 2025 from 11 am to 1 pm, Sebi said.

Appeal for independent investigation

The regulator has asked bidders to conduct independent due diligence, litigation, title and claims of the properties put up for auction before placing their bids. These entities had raised money from investors without following market norms. According to previous Sebi orders, Mangalam Agro had raised Rs 11 crore from illegal issuance of secured non-convertible debentures (NCDs) to around 4,820 investors during 2011-2012, while Sumangal had collected Rs 85 crore from investors through illegal collective investment schemes (CIS).

Who raised how much money

Besides, Vishal Distillers raised Rs 4 crore, Vishal Agri-Bio Industries and Vishal Horticulture and Animal Projects raised Rs 3 crore and Rs 2.84 crore respectively. These funds were raised by the firms between 2006-2014. Besides, Vishal Abasan India raised Rs 2.75 crore during 2011-12, besides Rs 89 crore by issuing NCDs in 2012-14. Besides, Ravi Kiran raised funds by issuing RPS to 1,176 individuals.