Sebi to carry auction of 15 properties on May 11 for recovering investors money

The market watchdog will carry an e-auction for a total of 15 properties of these three firms on May 11. The reserve prices on the properties range from ₹19 lakh to ₹1.7 crore.

Of the total 15 properties, nine properties belong to Sun Plant Business, while four are of Sun Plant Agro and the remaining two properties belong to Remac Realty.

As per Sebi’s statement, the request for inspection of properties is scheduled before April 18, while the inspection is set to be carried out from April 21 and 22. The regulator has asked bidders to submit their EMD on or before May 5, 2022, by 5 pm.

While the e-auction will be carried out between 10.30 am to 12.30 pm on May 11. There is a time extension of 5 minutes on e-auction day, till the sale is concluded.

Adroit Technical Services is appointed as the e-auction service provider and online registration & e-auction will be conducted through www.adroitvaluations.com.

Sebi stated that in case any market-leading bid (bid higher than the highest at the point in time) is received within the last five minutes of closing time, the bidding time shall be extended automatically by five minutes and in case no bid higher than the last quoted highest bid is received within the said extended five minutes, the auction sale shall automatically get closed at the expiry of the extended five minutes. There shall thus be an extension of bidding time, each of five minutes duration, till the auction is concluded.

Bidders can participate in the e-auction from anywhere. The intending bidders need to fill up the Bid Form, upload a copy of any valid photo identity/address proof, and a copy of the PAN Card & Aadhar Card at the platform provided by the Agency/service provider by following the instructions contained therein.

Also, each of the properties will be sold in a single lot and shall not be sold below the Reserve Price fixed.

It needs to be noted that attachments proceedings were initiated in December 2014 against Sun Plant Agro for recovering ₹69.34 crore, followed by a separate attachment against Sun Plant Business in December 2015 to recover about ₹5.76 crore.

Both the companies were under allegations of non-compliance. Between 2005 to 2008, Sun Plant Business collected ₹4.17 crore from 470 investors through the issuance of preference shares (RPS), however, without complying with the public issue norms. On the other hand, Sun Plant Agro is alleged for running a collective investment scheme (CIS) without requisite approvals and registration.

Whereas, Remac Realty came under Sebi radar in 2020 when the market regulator prohibited the company and its directors from the securities market for at least four years for fundraising activities through alleged CIS without regulatory clearance. Sebi had directed the company to return the funds to investors.