Sebi to auction properties of Saradha Group on Nov 1

Markets regulator Sebi on Friday said it has lined up as many as 69 properties of Saradha Group of Companies for an auction on November 1 at 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.

In a notice, the Securities and Exchange Board of India (Sebi) said the auction will be conducted between 11 am to 1 pm on November 1, 2022.

The properties to go under the hammer include land parcels located in West Bengal.

The total reserve price of these properties is pegged at about Rs 30 crore and the regulator has appointed C1 India as the e-auction provider.

Online registration and e-auction will be conducted through Quikr Realty.

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.

As per the notice, the market watchdog said bidders should make their own independent enquiries regarding the encumbrances, litigations, attachments, acquisition liabilities of the property put on auction, prior to submitting their bid.

"The properties are being sold with all the existing and future encumbrances, whether known or unknown to Sebi/ the agency.

"Sebi/ the agency shall not be responsible in any way for any third party claims/rights/dues, etc," the notice said.