SEBI puts Pancard Clubs' properties with a reserve price of Rs 743 crore on sale

To recover over Rs 7,000 crore of investors' money from Pancard Clubs, market regulator SEBI has put to sale a total of 40 properties along with five vehicles owned by the firm at a total reserve price of over Rs 743 crore next month.

Securities and Exchange Board of India (SEBI) in a notice issued said it has engaged SBI Capital Markets "to assist it for sale of the properties of the Pancard Clubs Ltd through e-auction platform" with the reserve price of Rs 742.79 crore on October 24.

Besides, for the auction of five vehicles, SEBI has sought C1 India Pvt Ltd for sale of vehicles, regulator added.

The properties listed for the sale include a four-star hotel, resorts, land parcels and office spaces in Maharashtra, Karnataka, West Bengal, Tamil Nadu and Gujarat and Rajasthan as well as five vehicles, including Mercedes Benz, Toyota Innova and Hyundai Verna, owned by the company.

The interested bidders can inspect these properties on October 4, SEBI said.

The move comes after Pancard Clubs had failed to comply with SEBI order passed in February 2016 that had directed the company to refund investors over Rs 7,000 crore.

The company had mobilised Rs 7,035 crore from 51,55,516 investors from 2002-03 to 2013-14 through its various holiday schemes which were found to be illegal collective investment schemes by the regulator.