SEBI cautions public against buying properties of HBN Dairies & Allied Ltd
The cautionary statement comes after Sebi discovered that some individuals or entities are interfering with the auction process by spreading false rumours, pretending to be Sebi officials, and trespassing on HBN properties
New Delhi: Markets regulator Sebi has cautioned public against buying and dealing with any property belonging to HBN Dairies & Allied Ltd. The cautionary statement comes after Sebi discovered that some individuals or entities are interfering with the auction process by spreading false rumours, pretending to be Sebi officials, and trespassing on HBN properties.
These actions are not only misleading potential buyers but also obstructing Sebi’s e-auction process, the regulator noted. In response, Sebi in a notice issued last week, cautioned public against “buying/dealing with any properties wherein HBN, its directors or any of its associates/subsidiaries/ sister companies have any interest/rights directly or indirectly”.
The regulator also said no person is allowed to take illegal possession of or interfere with the assets of HBN, its directors, or its related entities, including subsidiaries, associates, and sister companies. Any such unauthorised actions will result in legal consequences under applicable laws.
Further, Sebi emphasised that as per Supreme Court orders, it has full authority to sell the assets of HBN, its directors, and its related companies, including properties where HBN has any direct or indirect interest.
A Supreme Court order in May 2024 granted Sebi the authority to sell the assets of HBN with the involvement of a liquidator. A subsequent order in October 2024 further permitted Sebi to sell and dispose of assets and properties of HBN’s sister companies, which are currently in liquidation.
Following the orders, the regulator in January stated that it will auction 26 properties of HBN Dairies & Allied Ltd for a reserve price of Rs 83 crore on February 27. Before this, the regulator had in August last year auctioned eight properties of HBN. The moves are part of the markets watchdog’s effort to recover money raised by HBN through illicit collective investment schemes.
The Sebi initiated the process for the sale of the assets after HBN and its directors — Harmender Singh Sran, Amandeep Singh Sran, Manjeet Kaur Sran and Jasbeer Kaur — failed to refund investors’ money. The assets of HBN and its directors were attached by Sebi under recovery proceedings initiated via a prohibitory order in September 2017.
The company had illegally mobilised Rs 1,136 crore from gullible investors through schemes involving purchase of cattle to earn huge returns from the sale of ghee. By indulging in these practices, HBN Dairies & Allied had contravened the regulatory norms.
