Markets regulator Sebi will auction properties of Kerala Housing Finance at a reserve price of Rs 1.3 crore on February 4 to recover dues.
The properties to be put on sale include land parcels and flats situated in Kerala, along with an Ashok Leyland AC Semi Deluxe Airbus, the Securities and Exchange Board of India (Sebi) said in a notice on Tuesday.
The move is part of Sebi’s effort to recover investors’ money.
Kerala Housing Finance had garnered funds from investors through issuance of securities without complying with the regulatory norms.
Quikr Realty Ltd has been engaged by Sebi to assist it for sale of the properties through e-auction platform C1 India.
Inviting bids, Sebi has said the online auction will take place on February 4 at 11 am.
The intending bidders should make their own independent enquiries regarding the encumbrances, litigations, attachments, acquisition liabilities of the assets prior to submitting their bid, it added.
According to a Sebi order, Kerala Housing Finance had issued six series of secured redeemable Non-Convertible Debentures (NCDs) labelled A to F to 23,538 allottees and mobilised funds to the tune of Rs 158 crore during 1999-2014.
In addition, the company had allotted preference shares to a total of 1,071 investors and garnered Rs 19 crore during 2014-15 and 2015-16.
In August 2017, Sebi had directed Kerala Housing Finance and its promoters as well as directors to refund investors’ money, along with interest, within 180 days.
The move came after the regulator received a reference from the National Housing Bank stating that Kerala Housing Finance had raised funds from the public without complying with the regulatory requirements.