With an aim to recover investors' money, markets regulator Sebi will auction eight properties of Vishwamitra International Infra next month for a reserve price of Rs 2.8 crore.
These properties are vacant lands located in West Bengal, the Securities and Exchange Board of India (Sebi) said in a notice.
Inviting bids for the sale of these properties, Sebi said the auction will be conducted online mode on January 27, 2022 from 11 am to 1 pm.
The regulator has asked the intending bidders to make their own independent enquiries regarding the measurement, nature, type, classifications, encumbrances, litigations, attachments and liabilities of the properties put on auction.
Procurement Technologies has been engaged by Sebi to assist it for sale of the properties.
Vishwamitra International had allotted over 41.5 lakh non-convertible debentures (NCDs) worth Rs 41.61 crore in 2012-13 to Vishwamitra India Tour & Hotels Ltd (its group company), which in turn transferred these NCDs to 83,109 investors, without complying with public issue norms, according to a Sebi order issued in 2016.
As of March 2014, the amount raised through offer of NCDs by Vishwamitra International was Rs 107 crore.
Under the norms, the firm was required to list its securities on recognised bourse as the shares were issued to more than 50 persons. It was also required to file a prospectus, among other things, which it failed to do.
In August 2016, Sebi had ordered Vishwamitra International, its group company and five directors to refund investors' money in three months, which they had raised by issuing NCDs without complying with the public issue norms.
Besides barring the firms and their directors for four years, they were asked to refund the money along with an interest of 15 per cent per annum.
However, they failed to do so and consequently, the regulator initiated recovery proceedings against Vishwamitra International and Vishwamitra India Tour & Hotels and their common directors.
