SEBI To Auction 30 Properties Of Rose Valley On June 27 At Reserve Price Of Rs 409 Crore
SEBI announced that the online auction is scheduled to take place from 11 am to 1 pm on June 27.
The Securities and Exchange Board of India on Thursday reported it would be auctioning 30 properties of Rose Valley group of companies on June 27 at a reserve price of Rs 409 crore in order to recover money accumulated by the firm from the public through illicit schemes.
In a public notice, SEBI stated that the assets slated for auction encompass land featuring structures, apartments, a resort, hotels, an amusement park, various buildings, plots, and land holdings situated in West Bengal, the Andaman and Nicobar Islands, Tripura, and Bihar.
SEBI further announced that the online auction is scheduled to take place from 11 am to 1 pm on June 27, with the aggregate base price for these properties set at Rs 409.02 crore.
The capital markets regulator stated that it has designated C1 India as the entity responsible for conducting the electronic auction and has enlisted the services of Quikr Realty to aid in the sale of Rose Valley's properties.
As per a directive issued by the Calcutta High Court on May 11, 2015, an Assets Disposal Committee was established to supervise the sale of assets owned by the Rose Valley group, with the proceeds intended for the repayment of investors.
In September 2023, the court instructed SEBI to commence online auctions for specific properties belonging to Rose Valley. Following the directives of the ADC, the regulatory body is now responsible for moving forward with the auction of these assets.
According to the notice, prospective bidders, whether located in India or abroad, can participate in the electronic auction remotely. Consequently, individuals intending to purchase must engage in the e-auction personally, without any involvement from third parties such as authorized agents or representatives.
The notice further specified that the winning bidder will be responsible for all legally mandated charges and fees associated with the property's conveyance, including applicable stamp duties, additional stamp duty, transfer charges, registration expenses, and other related fees necessary to transfer the property under their name. It also clarified that all taxes will be the responsibility of the buyer.
In November last year, SEBI had auctioned 27 properties of Rose Valley group worth Rs 63.26 crore.
Prior to that, in May 2024, SEBI auctioned 22 properties of Rose Valley worth Rs 8.6 crore. In June 2022, SEBI ordered attachment of bank accounts as well as shares and mutual fund holdings of Rose Valley Hotels and Entertainment Ltd and its then directors to recover investors' dues totalling more than Rs 5,000 crore.
This came after they failed to comply with SEBI directions to refund investors' money.
In November 2017, the regulator had ordered Rose Valley and its then directors to refund thousands of crores to investors who had parked money in holiday membership plans of the group as it declared those schemes as illegal.
The various plans were offered by the firm with a promise of return to qualify as a collective investment scheme.
Meanwhile, the Enforcement Directorate in March 2023, revealed that assets worth around Rs 150 crore were attached under the anti-money laundering law as part of an investigation against the Rose Valley Group.
According to the ED, funds were collected by selling "fake and fabricated" schemes through a chain of agents located in Assam, West Bengal, Tripura, Odisha, Jharkhand and several other states.
(With Inputs From PTI)
