Sebi to auction 61 properties of Saradha Group on July 17 to recover investors’ money

Sebi to auction 61 properties of Saradha Group on July 17 to recover investors’ money

Capital markets regulator Sebi on Monday said it will auction 61 properties of Saradha Group on July 17 at a reserve price of over Rs 26 crore to recover money raised by the firm from the public through illicit schemes.

The properties to go under the hammer include land parcels located in West Bengal, the Securities and Exchange Board of India (Sebi) said in a notice.

The regulator said the e-auction will be conducted between 11 am and 1 pm on July 17. The total reserve price of these properties is pegged at Rs 26.22 crore.

Sebi has engaged Quikr Realty to assist it in the sale of the properties and appointed C1 India as the e-auction provider.

The development came after the Calcutta High Court passed an order in June 2022, whereby it directed Sebi to proceed with the auction of properties of the Saradha Group of Companies. The entire exercise was directed to be completed within three months.

Saradha Group, a consortium of over 239 private companies, allegedly ran chit-fund operations in West Bengal, Assam and Odisha, and raised around Rs 4,000 crore from 1.7 million depositors before it collapsed in April 2013.

As per the notice, the regulator said bidders should make their own independent enquiries regarding the encumbrances, litigations, attachments and acquisition of liabilities of the property put on auction, prior to submitting their bid.

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“The purchaser shall participate in the e-Auction on his own behalf and no third party intervention, like authorised agent/ representative, would be permitted.

“The successful bidder shall bear the charges/ fee payable for the transfer of the property in his/ her name. All taxes shall be borne by the purchaser,” the notice said.

In March, the regulator said that it will auction 66 properties of Saradha Group on April 11 at a reserve price totalling Rs 32 crore.