SEBI’s Financial Crackdown: Auction of Saradha Group’s Properties Worth Rs 26 Crore to Benefit Investors

SEBI plans to auction 61 properties owned by the Saradha Group on July 17. The auction’s reserve price is set at over Rs 26 crore. SEBI aims to recover funds raised by the company through illicit schemes. The properties consist of land parcels located in West Bengal. The e-auction will take place between 11 am and 1 pm on July 17, with a total reserve price of Rs 26.22 crore.

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SEBI  has enlisted the services of Quikr Realty to facilitate the sale of the properties, while C1 India has been appointed as the provider for the e-auction. This decision follows a directive from the Calcutta High Court in June 2022, instructing SEBI to proceed with the auction of the Saradha Group’s properties. The court mandated that the entire process be completed within a three-month timeframe.

The Saradha Group, consisting of more than 239 private companies, is accused of conducting chit-fund activities in West Bengal, Assam, and Odisha. Before its collapse in April 2013, it allegedly raised approximately Rs 4,000 crore from 1.7 million depositors. According to the notice, SEBI has advised potential bidders to conduct their own inquiries into any encumbrances, legal disputes, attachments, or liabilities associated with the properties being auctioned before submitting their bids.

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The buyer must personally participate in the e-Auction and no involvement of third parties, such as authorized agents or representatives, will be allowed, stated the notice. The winning bidder will be responsible for covering the charges and fees associated with transferring the property into their own name. Additionally, all applicable taxes will be the responsibility of the purchaser, the notice further clarified.

In March, SEBI announced its plans to auction 66 properties belonging to the Saradha Group on April 11, with a total reserve price of Rs 32 crore.