Sebi to auction 19 properties of KBCL India in July

The move is part of Sebi's effort to recover investors' money.
SEBI building.
SEBI building.File photo| Reuters

NEW DELHI: Capital markets regulator Sebi has lined up 19 properties of KBCL India Ltd for auction on July 16 to recover money illegally collected from investors.

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

The regulator has initiated the process for the sale of assets after KBCL India Ltd, its directors Rakesh Kumar, Vishvnath Pratap Singh and Shashi Kant Mishra failed to refund the investors' money.

The properties include land parcels and a plot in Uttar Pradesh and they will be auctioned at a reserve price of Rs 3. 54 crore, according to a notice issued by the Securities and Exchange Board of India (Sebi) on Wednesday.

Quikr Realty has been engaged by Sebi to assist it in the sale of properties, while C1 India has been appointed as the e-auction service provider.

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.

The markets watchdog is inviting bids for the sale of properties in the recovery proceedings against KBCL India Ltd, its directors -- Rakesh Kumar, Vishvnath Pratap Singh and Shashi Kant Mishra.

Sebi said the auction will be conducted online on July 16 from 11 am to 1 pm.

KBCL India Ltd had mopped up money from investors without complying with regulatory norms.

In May 2014, the markets watchdog restrained KBCL India Ltd, and its directors from raising any money from the public.

In its probe, Sebi found that KBCL (formerly known as Kalpataru Biotech Corporation) was running a Collective Investment Scheme (CIS) without requisite approvals and registration from the markets regulator.

Kumar, Singh and Mishra being the directors of KBCL were also liable for the violations committed by the company.

KBCL India Ltd had mobilised funds to the tune of Rs 118. 69 crore as of March 31, 2012.

"Purchaser shall participate in the e-auction on his behalf and no third-party intervention, like authorised agent/ representative, would be permitted. The successful bidder shall bear the charges/ fee payable as per law for the transfer of the property in his / her name. All taxes shall be borne by the purchaser," the notice said.

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