The Securities and Exchange Board of India (SEBI) has announced plans to auction off 61 properties of the Saradha Group on July 17th, with a reserve price of over Rs 26 crores. SEBI aims to recover money that the firm raised from the public through illicit schemes. The properties set to go up for auction include land parcels situated in West Bengal. The auction will be conducted via e-auction between 11 am and 1 pm, with the help of Quikr Realty, and the overall reserve price of the properties is Rs 26.22 crores. C1 India is the provider of the e-auction.
The directive for the auction comes after a recent order from the Calcutta High Court, in June, which instructed SEBI to proceed with the sale of properties held by the Saradha Group of Companies. All related activities must be completed within three months.
Saradha Group, which is a consortium of 239 private companies, allegedly operated chit fund operations throughout West Bengal, Assam and Odisha. The firm raised around Rs 4,000 crores from around 1.7 million depositors before eventually collapsing in April 2013.
SEBI noted that bidders should conduct their independent enquiries about the encumbrances, acquisitions, litigations and attachments of the property that is being auctioned off before submitting their bids. The regulator also reminded prospective bidders that they must participate in the e-Auction independently, with no third-party intervention. They must also bear any charges necessary for the transfer of the property into their own names, as well as the taxes.
This news comes after SEBI previously announced plans to auction off 66 Saradha Group properties in April, with a total reserve price of Rs 32 crores.
