While Life Care Infratech had raised capital from investors through issuing securities without even complying with the public issue guidelines, the other three firms had raised funding via collective investment scheme (CIS), without receiving any regulatory approvals.
The Securities and Exchange Board of India (SEBI) has decided to sell six properties of four companies next month at a reserve price totalling to Rs 5 crore as part of its efforts to recover investors’ money that these firms had illegally mobilised from people. These four companies are Life Care Infratech, Swar Agrotech, Servehit Housing and Infrastructure India and Raghav Capital and Infrastructure.
The capital markets regulator will conduct the auction for these six properties that have been put on the block and located in Uttar Pradesh and Haryana state on November 11, 2018, a notice issued by SEBI on Friday showed. Of these six properties, while two each belong to Life Care Infratech and Swar Agrotech, one each belongs to Raghav Capital and Servehit Housing. The reserve price of all six properties amounted to Rs 4.74 crore.
While Life Care Infratech had raised capital from investors through issuing securities without even complying with the public issue guidelines, the other three firms – Raghav Capital, Swar Agrotech and Servehit Housing had raised funding via collective investment scheme (CIS), without receiving any regulatory approvals.
SBI Capital Markets has been roped in to assist the capital market watchdog for the sale process of these properties via e-auction platform. Further, SEBI added that interested parties can inspect the properties that have on the block during November 12-16. Bidders can make their own independent enquiries related to the title of properties and claims, encumbrances, among others, before submitting their bids.
In January last year, SEBI had barred Life Care Infratech and its six directors from selling their various immovable and movable properties after it found that the company raised capital illegally from the public.