The move is part of Sebi’s effort to recover investors’ money.
In a notice on Saturday, the Securities and Exchange Board of India (Sebi) said it will auction 13 properties of MPS Group of companies, three properties of Vibgyor Allied Infrastructure, and two properties of Pallan Group of companies at a reserve price totaling over Rs 62 crore. The auction will be conducted online on October 4 between 11 am and 1 pm.
The regulator has initiated the process for sale of assets of the companies as per orders by the Calcutta High Court.
Justice Sailendra Prasad Talukdar has been appointed as the one-man committee for liquidating the assets of the firms and repaying the investors.
“The committee has directed Sebi to proceed with auction of select properties of Vibgyor Allied Infrastructure Limited, MPS Group of companies, and Pailan Group of Companies,” the notice mentioned.
These firms had mopped up money from investors without complying with regulatory norms.
MPS Group of companies includes MPS Greenery Developers that collected Rs 1,520 crore from investors through illegal collective investment schemes (CIS).
Vibgyor Allied Infrastructure had issued optionally fully convertible debentures (OFCDs) to 49,562 investors in 2009 and raised an amount of Rs 61.76 crore and Pailan Group of companies had raised Rs 83.42 crore by issuing non-convertible debentures (NCDs) to 23,685 persons between 2010-11 and 2014-15.
The two firms raised the money without complying with requirements relating to the public issue.