SEBI to auction properties of Pancard Clubs on 27 June to recover Rs 7,000 crore; reserve price set at Rs 1,700 crore

Looking to recover over Rs 7,000 crore of investors' money, markets regulator SEBI will next month auction 20 properties of Pancard Clubs

PTI May 23, 2018 13:55:26 IST
SEBI to auction properties of Pancard Clubs on 27 June to recover Rs 7,000 crore; reserve price set at Rs 1,700 crore

New Delhi: Looking to recover over Rs 7,000 crore of investors' money, markets regulator SEBI will next month auction 20 properties of Pancard Clubs and its late chairman and managing director at a total reserve price of over Rs 1,700 crore.

This is in addition to at least 57 properties which were auctioned between December and May with a combined reserve price of more than Rs 3,000 crore.

In a notice issued on Wednesday, the Securities and Exchange Board of India (SEBI) said SBI Capital Markets will auction 17 properties of Pancard Clubs and three properties of its late CMD Sudhir Moravekar on 27 June at a reserve price of about Rs 1,733 crore.

SEBI to auction properties of Pancard Clubs on 27 June to recover Rs 7000 crore reserve price set at Rs 1700 crore

Representational image. Reuters

The properties listed for the sale include a four-star hotel, resorts, land parcels and office spaces in Maharashtra, Karnataka, West Bengal, Madhya Pradesh, Tamil Nadu and Kerala. The interested bidders can inspect these properties on 12 June.

SEBI said the bidders should make their own independent enquiries regarding nature, type, classifications, encumbrances, litigations, attachments, acquisition liabilities of the properties put under auction before submitting their bids.

The company had failed to comply with SEBI's direction in February 2016 ordering it to refund investors over Rs 7,000 crore, raised through illegal collective investment schemes (CIS).

Pancard Clubs had mobilised Rs 7,035 crore from 51,55,516 investors from 2002-03 to 2013-14 through its various holiday schemes.

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