Sebi Extends Time Till Nov 9, To Auction Properties Of Saradha Group of Companies

Sebi on Friday extended the time till November 9 to auction the properties of Saradha Group of Companies to recover money that was illegally raised by them. Earlier, the auction was scheduled for November 1. However, considering the interests of the bidders seeking more time to submit the EMD (Earnest Money Deposit) due to festive season and intervening bank holidays during the period of auction, it has been decided to extend the last date of e-auction to November 9, Sebi said in the notice.

The regulator will auction as many as 69 properties of Saradha Group of Companies for a reserve price of Rs 30 crore. The move is part of Sebi's efforts to recover money raised by the company from public through illicit schemes. The properties that will go under the hammer include land parcels located in West Bengal. Last month, the regulator issued a notice for the sale of the immovable properties of Saradha, wherein the last date of submission of the bids was fixed as November 1.

Now, the regulator has extended the date to November 9. Also, Sebi has appointed C1 India as the e-auction provider while online registration and e-auction will be conducted through Quikr Realty. The bidders are required to make their own independent enquiries regarding the encumbrances, litigations, attachments, acquisition liabilities of the property put on auction, prior to submitting their bid.

The development came after the Calcutta High Court passed an order in June, whereby it directed Sebi to proceed with the auction of properties of Saradha Group of Companies. The entire exercise was directed to be completed within 3 months. Saradha Group, a consortium of over 239 private companies, allegedly ran chit fund operations in West Bengal, Assam and Odisha and mopped up Rs 4,000 crore from 1.7 million depositors before it collapsed in April 2013.

(PTI)