Sebi to auction Arise Bhoomi Developers' properties on Apr 1

Capital markets regulator Sebi will auction properties of Arise Bhoomi Developers and its directors on April 1 for a reserve price of Rs 4.8 crore.

The move is a part of Sebi's effort to recover investors' money.

Arise Bhoomi Developers had mobilised over Rs 8 crore during 2013-14 from the public in the name of 'purchase of agricultural land' through its various investment schemes, promising them an expected sum at the end of the contract.

The schemes, as per Sebi, qualified to be a CIS which requires compulsory registration from the regulator. However, the company launched the schemes without obtaining necessary approvals from Sebi.

In a notice on Friday, the Securities and Exchange Board of India (Sebi) had said it will auction 12 properties belonging to the company and its directors at a reserve price of Rs 4.8 crore. The auction will be conducted online in April.

The properties that have been put on sale include land parcels and a shop, located in Uttar Pradesh and Maharashtra.

Sebi said Adroit Technical Services Limited has been engaged by it to assist in the sale of the vehicles through e-auction platform.

In June 2016, the markets regulator had ordered Arise Bhoomi Developers and its directors to refund investors money in three months.

Besides, they were barred from the securities market for four years. However, they failed to pay the investors' money and consequently, Sebi attached their bank and demat accounts in October 2016 to recover pending dues worth over Rs 8 crore. In November 2018, Sebi had levied a fine totalling Rs 1 crore on the firm and its directors for mobilising funds from small investors through unregistered collective investment scheme (CIS).

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)