Sebi extends property auction time of Mega Mould, Remac Realty till Aug 31

Sebi has extended the time till August 31 to auction properties of two companies -- Mega Mould India and Remac Realty India -- to recover money that was illegally raised by them.

Earlier, the auction was scheduled for August 18.

However, considering the interests of the bidders expressed for inspection of the properties through site visit and submission of bids, it has been decided to extend the last date of e-auction to August 31, the Securities and Exchange Board of India (Sebi) said in a notice on Thursday.

The regulator will auction a total of four properties of these two firms for a reserve price totalling Rs 4.05 crore. The auction will be conducted online from 1030 hours to 1230 hours.

Of the four properties, three relate to Mega Mould and the remaining one belongs to Remac Realty. These properties include flats, a land parcel and a utility room located in West Bengal.

Last month, the regulator issued a notice for the sale of immovable properties of Mega Mould and Remac Realty and their promoters or directors, wherein the last date of submission of the bids was fixed as August 11. Now, the regulator has extended the date to August 29.

Adroit Technical Services has been appointed as the e-auction service provider.

The bidders are required to make their own independent enquiries regarding the encumbrances, title of properties put on auction and claims, among others, before submitting their bids.

A probe by the regulator had found that Mega Mould raised Rs 888 crore through issuance of Non-Convertible Debentures (NCDs) without complying with the regulatory provisions applicable for a public issue, while Remac Realty was involved in illegal mobilisation of funds from the public through Collective Investment Schemes (CIS) without obtaining a registration certificate from Sebi.

The regulator had directed Mega Mould and Remac Realty as well as their respective directors to refund the money collected by the two firms through separate orders passed in March 2015 and March 2020, respectively. In addition, the companies and their directors were barred from the securities market for at least four years.