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SEBI plans to auction 17 properties of KBCL India Ltd in Uttar Pradesh to recover funds illegally mobilised from investors. With a reserve price of INR 4.23 crore, the e-auction will be conducted online in the coming weeks. SEBI has tasked Quikr Realty and C1 India with managing the auction process. KBCL and its directors had collected INR 118.69 crore through unapproved Collective Investment Schemes, leading SEBI to bar the company from raising further funds in 2014. Prospective bidders must independently verify property liabilities, and successful bidders will bear transfer-related charges and taxes.
Capital markets regulator, the Securities and Exchange Board of India (SEBI), is set to auction 17 properties belonging to KBCL India Ltd to recover funds illegally collected from investors. The e-auction is scheduled to take place online in the coming weeks. The action follows KBCL India Ltd, along with its directors Rakesh Kumar, Vishvnath Pratap Singh, and Shashi Kant Mishra, failing to return the money owed to investors. Advertisement
The 17 land parcels in Uttar Pradesh have a combined reserve price of INR 4.23 crore. SEBI has enlisted Quikr Realty to assist with the auction process and appointed C1 India as the e-auction service provider. Prospective bidders have been advised to independently verify the encumbrances, litigations, and liabilities associated with the properties before submitting their bids.
SEBI initiated recovery proceedings after discovering that KBCL India Ltd had raised INR 118.69 crore as of March 2012 through a Collective Investment Scheme (CIS) without necessary approvals. Back in mid-2014, the regulator prohibited KBCL India Ltd and its directors from raising funds from the public. It was also confirmed that the directors were responsible for the regulatory violations committed by the company.
The auction process will not allow third-party representatives, requiring all participants to bid on their own behalf. The successful bidder will bear all transfer fees, taxes, and charges. SEBI had previously auctioned 19 properties belonging to KBCL earlier this year, valued at INR 3.54 crore.
SEBI's move to auction KBCL India Ltd's properties highlights its commitment to enforcing regulatory compliance and protecting investors' interests. The action stems from KBCL's unauthorised mobilisation of substantial funds, underscoring the regulator's vigilance against breaches in market norms. By involving experienced auction facilitators, SEBI aims to ensure a transparent and fair process. While this auction is part of an ongoing recovery effort, it serves as a strong message to entities violating regulatory guidelines that their actions will face stringent consequences.
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