Sebi to Auction 17 Properties of KBCL India Ltd to Recover Investor Funds
(New Delhi, December 23) – The Securities and Exchange Board of India (Sebi) is set to auction 17 properties of KBCL India Ltd in order to recover funds that were illegally raised from investors. The company has repeatedly failed to refund the money to investors, despite regulatory orders. The auction, scheduled for December 23, will feature 17 land parcels located in Uttar Pradesh, with a collective reserve price of Rs 42.3 million, according to Sebi’s official notice. To assist in the auction process, Quikr Realty has been appointed, while e-auction services will be provided by C1 India.
Potential Bidders Advised to Verify Property Details
Sebi has advised potential bidders to independently verify the details regarding encumbrances, litigation, and liabilities associated with the properties before submitting their bids. This is an important step to ensure that bidders have a clear understanding of the property’s current condition and any challenges they may face. It is crucial for prospective buyers to undertake their due diligence before entering the auction.
Date and Time of the Online Auction(11 a.m. – 1 p.m.)
The online auction for the 17 properties will take place between 11 a.m. and 1 p.m. Interested buyers can participate and place their bids during this time. It is essential to note the duration of the auction and make the necessary arrangements to ensure their participation.
A History of Violating Regulatory Norms
KBCL India Ltd, formerly known as Kalpataru Biotech Corporation, had operated an unregistered Collective Investment Scheme (CIS) in violation of regulatory norms. The company raised Rs 1.18 billion from investors by March 31, 2012. Sebi found the company’s actions to be unlawful and, in May 2014, prohibited KBCL and its directors—Rakesh Kumar, Vishvnath Pratap Singh, and Shashi Kant Mishra—from raising any further funds. This is not the first time that Sebi has taken action against KBCL.
Bidders Required to Participate Independently
It is worth noting that bidders must participate in the auction independently, as no third-party representatives will be permitted. Successful bidders are also responsible for the costs associated with the transfer of property and any applicable taxes.
Recovering Funds for Investory Protection
Sebi’s auction of the properties owned by KBCL India Ltd highlights the regulator’s commitment to protecting the interests of investors. By ensuring that funds raised illegally are recovered, Sebi acts as a strong deterrent to fraudulent investment schemes. The auction process provides an opportunity for potential buyers to acquire properties at a reserve price, making it an attractive option for investors and real estate enthusiasts alike.
This news further underscores the need to stay vigilant and exercise caution while investing. Investors should research and assess any investment opportunity before committing funds. With Sebi’s actions, investors can gain confidence in the regulatory framework and its effectiveness in safeguarding their interests.
In a bid to streamline and strengthen the real estate sector, regulators like Sebi are taking proactive measures to crack down on illicit practices and maintain transparency. By conducting online auctions and inviting participation from buyers, Sebi ensures a fair and competitive platform for real estate transactions. The auction of KBCL India Ltd’s properties serves as a reminder to companies that they must adhere to regulatory norms and protect the interests of investors.
As the online auction approaches, potential bidders would be wise to thoroughly investigate and evaluate the offered properties. This due diligence will equip bidders with the information needed to make informed decisions and strategically participate in the auction. Overall, the auction process reflects Sebi’s dedication to upholding accountability and enforcing regulations to preempt potential financial misconduct in the Indian investment market.
Source: ET
