NEW DELHI: Markets regulator Sebi will next month auction a property of
Suman Motels, which had garnered funds through illegal money pooling
schemes to repay investors.
The Securities and Exchange Board of
India (Sebi) has initiated the process for sale of assets of the
company after it failed to pay
investors' money.
In a public
announcement issued today, the regulator said it will sell a commercial
property of Suman Motels in Mumbai on March 29, 2016 from 1030 hrs to
1130 hrs "with auto time extension of 5 minutes each till sale is
concluded."
The property will be sold in a single lot and will not be sold below the reserve price fixed.
The reserve price of the property is fixed at Rs 1.80 crore, the markets regulator said.
Further, the successful bidder would have to deposit 25 per cent of the
bid amount plus poundage fee immediately after close of auction and the
balance amount within 15 days from the date of auction.
In July
last year, the markets watchdog had ordered auction of Suman Motels'
property to recover money. The order was jointly passed by Sebi and
Mumbai's deputy collector under Maharashtra Protection of Interest of
Depositors (in Financial Establishment) Act.
Earlier in October
2002, Sebi had barred Suman Motels and its officials from the capital
markets for five years after it failed to comply with its order passed
in July of the same year that directed the firm to refund money
collected under the collective investment schemes with returns due to
investors within one month.