Sebi to auction properties of Sumangal Industries, GSHP Realtech on Aug 25

Markets regulator Sebi said it will auction properties of two companies -- Sumangal Industries and GSHP Realtech Ltd -on August 25, to recover money that was illegally raised from investors

Markets regulator Sebi on Thursday said it will auction properties of two companies -- Sumangal Industries and GSHP Realtech Ltd -- on August 25, to recover money that was illegally raised from investors.

A total of eight properties of these two firms will be auctioned for a reserve price totalling Rs 9.8 crore, according to a public notice issued by the Securities and Exchange Board of India (Sebi).

Of the eight properties, six relate to Sumangal Industries and the remaining two belong to GSHP Realtech.

These properties include land parcels, multi-storied buildings and a flat located in West Bengal.

Inviting bids for the sale of properties in the recovery proceedings against the two firms and their promoters or directors, Sebi said the auction will be conducted online on August 25, from 10.30 am to 12.30 pm.

eProcurement Technologies has been appointed as the e-auction service provider.

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.

A Sebi probe had found that GSHP Realtech mobilised money from 535 persons in 2012-13 by issuing Non-Convertible Redeemable Debentures (NCDs), without complying with the regulatory norms, while Sumangal had collected Rs 85 crore from investors through illegal collective investment schemes (CIS).

The firm was running illegal 'potato purchase' investment schemes promising up to 100 per cent gain in just 15 months to investors.

Sebi, in 2013 and 2016, had ordered Sumangal and GSHP Realtech as well as their promoters and directors respectively, to refund the money raised from investors. However, the entities failed to return investors' money and consequently the regulator initiated recovery proceedings against them.