Looking to recover over Rs 7,000 crore of investors' money, markets regulator Sebi will next month auction 24 properties of Pancard Clubs and its late chairman and managing director at a total reserve price of nearly Rs 2,100 crore.
Looking to recover over Rs 7,000 crore of investors’ money, markets regulator Sebi will next month auction 24 properties of Pancard Clubs and its late chairman and managing director at a total reserve price of nearly Rs 2,100 crore. This is in addition to at least 33 properties which were auctioned between December and March with combined reserve price of more than Rs 800 crore. In a notice issued today, the Securities and Exchange Board of India (Sebi) said SBI Capital Markets will auction 10 properties of Pancard Clubs and three properties of its late CMD Sudhir Moravekar on May 9 at a reserve price of Rs 2,087 crore. The properties listed for the sale include a four-star hotel, resorts, land parcels, office spaces and shops in Maharashtra, Karnataka, West Bengal, Madhya Pradesh, Tamil Nadu and Kerala.
Sebi said the bidders should make their own independent enquiries regarding the “nature, type, classifications, encumbrances, litigations, attachments, acquisition liabilities” of the properties put under auction before submitting their bids. “The properties are being sold with all the existing and future encumbrances, whether known or unknown to Sebi. Sebi shall not be responsible in any way for any third party claims, rights or dues etc,” the regulator added.
The company had failed to comply with Sebi’s direction in February 2016 ordering it to refund to investors over Rs 7,000 crore, raised through illegal collective investment schemes (CIS). Pancard Clubs had mobilised Rs 7,035 crore from 51,55,516 investors from 2002-03 to 2013-14 through its various holiday schemes.