Markets regulator Sebi will next month auction two properties owned by Suman Motels for reserve price totaling more than Rs 6 crore.
Markets regulator Sebi will next month auction two properties owned by Suman Motels for reserve price totaling more than Rs 6 crore. The move is part of an effort by Sebi to recover money that the company had illegally mobilized from people. The properties to go under the hammer include two land parcels located in Maharashtra, Securities and Exchange Board of India (Sebi) said in a public notice issued today. It has invited bids for the sale of immovable properties of Suman Motels Ltd through e-auction on September 13. The reserve price of the properties is fixed at Rs 6.6 crore, it added.
“It is learned that Stressed Assets Stabilisation Fund or SASF (trust formed under IDBI Bank) and other financial institutions are having charge” on these two properties, the notice said. “Pursuant to the directions of the MPID (Maharashtra Protection of Interest of Depositors in Financial Establishment) Court… properties are put for sale pending the outcome of the claims by banks and financial institutions Sebi with the assistance of SASF is liquidating the above (two) properties,” it added.
The regulator said 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/dues, etc. All applicable taxes shall be borne by the bidder”. Sebi had earlier auctioned Suman Motels’ properties in August 2015 and March 2016.
In October 2002, Sebi had barred Suman Motels and its officials from the capital market for five years after it failed to comply with its July order that had directed the company to refund money collected under the ‘collective investment schemes; with returns due to investors within a period of one month.