SEBI to Auction Properties of Nine Companies in February 2025 to Recover Investor Funds
the Securities and Exchange Board of India (SEBI) has scheduled an auction of 23 properties belonging to nine companies in February 2025. This auction is part of SEBI’s ongoing effort to liquidate the assets of firms that had raised funds without adhering to regulatory norms. Among the companies whose properties will be auctioned are Tower Infotech, Vibgyor Group, GBC Industrial Corporation, Waris Group, Pincon Group, Kolkata Weir Industries Ltd (KWIL), Annex Infrastructure India, I-core Group, and MPS Group.
The auction process, which has been initiated following the orders of the Calcutta High Court, aims to recoup funds that were collected from investors through non-compliant means. The properties up for auction include a variety of assets such as plots, apartments, and buildings, primarily located in West Bengal. The total reserve price for these properties has been set at Rs 55 crore, as per SEBI’s official notice. The properties belong to various firms, with seven properties each from Tower Infotech and Vibgyor Group, two properties each from Waris Group and GBC Industrial Corporation, and the remaining properties owned by MPS Group, I-Core Group, Annex Infrastructure India, KWIL, and Pincon Group. SEBI has appointed Justice Sailendra Prasad Talukdar as the one-man committee to oversee the liquidation of these assets and ensure that the funds are used to repay the affected investors.
The auction is set to take place online on February 6, 2025, from 11 AM to 1 PM. SEBI has called for bidders to make their own independent enquiries regarding any encumbrances, litigations, or claims on the properties before submitting their bids. The properties being auctioned have legal complexities attached to them, as they were part of schemes that bypassed regulatory frameworks, leading to investor losses. One notable case is Vibgyor Allied Infrastructure, which in 2009 raised Rs 61.76 crore by issuing optionally fully convertible debentures. Similarly, Tower Infotech raised nearly Rs 46 crore through non-convertible debentures and redeemable preference shares between 2005 and 2010. These funds were collected without meeting the regulatory requirements set by SEBI, which prompted the regulator’s intervention.
As part of its strategy to safeguard investor interests, SEBI is working to ensure that these liquidated assets are sold efficiently, and the proceeds are channelled back to compensate investors. Adroit Technical Services has been appointed by SEBI to assist in the sale of the properties. This auction is expected to be an important step in SEBI’s broader agenda of ensuring accountability and transparency in the securities market. It also serves as a reminder to businesses and investors alike about the importance of adhering to legal frameworks when raising capital and conducting financial transactions. With the online auction set for February 6, 2025, investors and bidders are encouraged to prepare for the sale and take the necessary steps to ensure they understand the legal status of the properties they may be interested in purchasing.
