Sebi to auction 11 properties of Arise Bhoomi Developers on August 26

Sebi on Friday said it will auction properties of Arise Bhoomi Developers and its directors on August 26 for a reserve price of Rs 52.28 crore.

The move is a part of Sebi's effort to recover investors' money.

Arise Bhoomi Developers had mobilised over Rs 8 crore during 2013-14 from the public in the name of 'purchase of agricultural land' through its various investment schemes, promising them an expected sum at the end of the contract.

The schemes, as per Sebi, qualified to be a CIS which requires compulsory registration from the regulator. However, the company launched the schemes without obtaining necessary approvals from the regulator.

In a notice, the Securities and Exchange Board of India (Sebi) said it will auction 11 properties belonging to the company and its directors at a reserve price of Rs 52.28 crore.

The auction will be conducted online in August.

The properties that have been put on sale include land parcels, shop and a plot, located in Uttar Pradesh and Maharashtra.

Sebi said Adroit Technical Services Ltd has been engaged by it to assist in the sale of the properties/vehicles through e-auction platform.

In April 2021, the market watchdog had auctioned 12 properties belonging to the company and its directors at a reserve price of Rs 4.8 crore.

In June 2016, Sebi had ordered Arise Bhoomi Developers and its directors to refund investors money in three months.

Besides, they were barred from the securities market for four years.

However, they failed to pay investors' money and consequently, Sebi attached their bank and demat accounts in October 2016 to recover pending dues worth over Rs 8 crore.

In November 2018, Sebi had levied a fine totalling Rs 1 crore on the firm and its directors for mobilising funds from small investors through unregistered collective investment scheme (CIS).