14 , April , 2022
In a major announcement, Capital markets regulator SEBI said it will auction the properties of Sun Plant Agro, Sun Plant Business and Remac Realty on May 11 to recover money that was illegally raised from the public. In total, 15 properties of these three firms will be auctioned for reserve prices ranging from Rs 19 lakh to Rs 1.7 crore.
Nine out of the 15 properties belong to Sun Plant Business, four relate to Sun Plant Agro and the remaining two belong to Remac Realty. These properties include land parcels and flats spread across West Bengal, the Securities and Exchange Board of India (SEBI) said in a notice.
With Adroit Technical Services appointed as the e-auction service provider, the auction will be conducted online on May 11 from 10.30 am to 12.30 pm. The bids are invited for the sale of assets under the recovery proceedings against the three firms and their directors.
The regulator has asked the bidders to make their own independent enquiries regarding the encumbrances, title of properties put on auction and claims, among others before submitting their bids.
SEBI had earlier attached some of the properties of Sun Plant Agro after its directives to refund investors’ money along with the interest did not materialise. The watchdog had also attached demat and bank accounts.
In December 2014, attachment proceedings were initiated against Sun Plant Agro to recover Rs 69.34 crore and a separate attachment order came in December 2015 against Sun Plant Business to recover a sum of Rs 5.76 crore.
Sun Plant Business had collected Rs 4.17 crore from 470 investors by issuing redeemable preference shares (RPS) between 2005 to 2008 without complying with the public issue norms.
Sun Plant Agro was running a collective investment scheme (CIS) without requisite approvals and registration.
The firm was alleged to have mobilised funds from the public with a promise of high returns under its sale of plants scheme.
In March 2020, the regulator had prohibited Remac Realty and its directors from the securities market for at least four years for illegal fund-raising activities allegedly through CIS without required clearances from the regulator and had directed them to refund investors’ money.
(WITH INPUTS TAKEN FROM PTI)
