The Indian capital market regulator will auction for 19 properties belonging to KBCL India Ltd. on July 16 to recover funds illicitly obtained from investors, aligning with SEBI's commitment to safeguarding investor interests.
The regulatory authority began the asset sale process as KBCL India and its directors—Rakesh Kumar, Vishvnath Pratap Singh, and Shashi Kant Mishra—failed to reimburse the investors' funds.
The Securities and Exchange Board of India announced on Wednesday that it will auction the assets, which include land parcels and a plot in Uttar Pradesh, at a base price of Rs 3.54 crore.
SEBI has engaged Quikr Realty to assist in the sale of properties, and has appointed C1 India as the e-auction service provider.
As per the notice, the regulator said bidders should make their own independent inquiries regarding the encumbrances, litigations, attachments, and acquisition of liabilities of the property put on auction prior to submitting their bid.
The market watchdog is inviting bids for the sale of properties in the recovery proceedings against KBCL India and its directors, Rakesh Kumar, Vishvnath Pratap Singh, and Shashi Kant Mishra.
SEBI said the auction will be conducted online on July 16 from 11 a.m. to 1 p.m.
KBCL India had mopped up money from investors without complying with regulatory norms.
In May 2014, the market watchdog restrained KBCL India and its directors from raising any money from the public.
In its probe, SEBI found that KBCL (formerly known as Kalpataru Biotech Corporation) was running a collective investment scheme without requisite approvals and registration from the market regulator.
Kumar, Singh, and Mishra, being the directors of KBCL, were also liable for the violations committed by the company.
As of March 31, 2012, KBCL India had mobilised funds totaling Rs 118.69 crore.
"The purchaser shall participate in the e-auction on his behalf, and no third-party intervention, like an authorised agent or representative, would be permitted."
"The successful bidder shall bear the charges or fee payable as per law for the transfer of the property in his or her name. All taxes shall be borne by the purchaser," the notice said.
(With Text Inputs From PTI)
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