Sebi to auction Tower Infotech's properties in October

To collect funds for repayment to investors, markets regulator Sebi will next month conduct an auction of three properties of West Bengal-based Tower Infotech Ltd, which had garnered money through illegal pooling schemes.

The Securities and Exchange Board of India (Sebi) has initiated the process for sale of assets of Tower Infotech Ltd, as per an order from Calcutta High Court, under which the auction would be conducted for sale of the company's assets.

In a notice, the capital markets watchdog said that the sale of Tower Infotech's three properties will be conducted on October 4, before the High Court.

The sale would be conducted through physical auction and the properties would not be sold below the reserve price fixed.

The properties listed for sale includes storied buildings and a land parcel in Calcutta with a reserve price of totalling Rs 5.2 crore.

Prospective buyers have been asked to send applications along with a payment for an amount equivalent to 10 per cent of the reserve price as earnest money by October 3. These properties can be inspected during September 26-27.

Last year, Sebi had conducted an auction for a land parcel of Tower Infotech. In 2014, the regulator had auctioned the company's four properties.