Capital markets regulator Sebi on Friday said it will auction nine properties belonging to Orion Industries Ltd and Rakhal Bharoti group of companies to recover investors' money raised by these firms.
The nine properties to be auctioned include land parcels located in West Bengal and Jharkhand. The total reserve price of these properties is pegged at around Rs 9 crore, the Securities and Exchange Board of India (Sebi) said in a notice.
Inviting bids for the sale of the properties in the recovery proceedings against Orion Industries Ltd and Rakhal Bharoti group of companies, along with their respective promoters and directors, Sebi said the auction will be conducted through online mode on November 20 from 10.30 am to 12.30 pm.
Quikr Realty Ltd has been engaged by Sebi to assist it in the e-auction.
Of the 9 properties to go under the hammer, seven belong to RB Group of companies, which comprises Rakhal Bharoti Fish and Food Processing Ltd and R B Horticulture and Animal Project Ltd, and the remaining two relate to Orion Industries.
This came after directives asking the companies to refund investors' money, along with interest, did not materialise. These firms had raised funds from investors without complying with regulatory norms.
The regulator said the bidders should make their own independent enquiries regarding the encumbrances, title of properties put on auction and claims, among others, prior to submitting their bids.
Going by the Sebi's order, Orion Industries collected Rs 5.46 crore between 2011 and 2013 by issuing redeemable preference shares (RPS) to nearly 4,200 people without complying with the public issue norms specified under the Companies Act.
Similarly, Rakhal Bharoti Fish and Food Processing Ltd raised Rs 11.4 lakh by issuing Secured Redeemable Debentures to 83 persons during 2012-13 and 2013-14, besides, RB Horticulture and Animal Project mobilised funds through the issuance of redeemable preference shares.