SEBI Moves Forward with Auction to Reclaim Investor Funds

The Securities and Exchange Board of India (Sebi) is set to auction 26 properties of HBN Dairies & Allied Ltd in February aiming to recover funds from illicit investment schemes. The auction, targeting properties across six Indian states, follows a Supreme Court order. The reserve price is set at Rs 83 crore.

The Securities and Exchange Board of India (Sebi) will auction 26 properties belonging to HBN Dairies & Allied Ltd as part of its efforts to recover money from investors in February. Valued at a reserve price of Rs 83 crore, the properties are the subject of a high-profile recovery effort.

This step follows the Supreme Court's May 2024 directive authorizing Sebi to sell HBN's assets with liquidator assistance after the company and its directors failed to return investors' money. HBN Dairies had illegally raised Rs 1,136 crore through unapproved investment schemes.

The collection of real estate, including plots and commercial spaces across New Delhi, Gujarat, Maharashtra, Punjab, Madhya Pradesh, and Chhattisgarh, will be auctioned online. Sebi urged potential bidders to perform due diligence on property liabilities before bidding.

(With inputs from agencies.)