Sebi to auction Suman Motels' property

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.