Royal Twinkle Star Club, Citrus Check Inns properties to be auctioned in Sept
Sebi’s move is intended to recover funds worth thousands of crores of rupees raised by these companies in the garb of the sham ‘timeshare holiday’ plans. The auction will be conducted through online mode.
Market regulator Securities and Exchange Board of India (Sebi) lined up 97 properties of Royal Twinkle Star Club and Citrus Check Inns for auction on September 25 at a reserve price of over ₹350 crore. Sebi’s move is intended to recover funds worth thousands of crores of rupees raised by these companies in the garb of the sham ‘timeshare holiday’ plans. The auction will be conducted through online mode.
Sebi said that land parcels, office premises, a car parking area and a shop in Maharashtra will go under auction along with four vehicles belonging to Royal Twinkle, Twinkle Hospitality and Citrus Resorts which total ₹8.28 lakh. Tata Indica, Skoda Superb Elegance and Mahindra Logan are the vehicles listed for auction. It will also auction a few properties of the companies on September 17 at a reserve price of ₹68.54 crore. Between November 2019 and January this year, 72 properties were auctioned at a reserve price of over ₹540 crore.
Penalties faced by Royal Twinkle Star Club and Citrus Check Inns
Sebi’s move comes after the Supreme Court asked the sale-cum-monitoring committee headed by retired Justice J P Devdhar to proceed with the sale of 114 properties of both companies in six months. The market regulator imposed a penalty on Citrus Check Inns of ₹50 lakh in December 2018, citing non-compliance with its order where it barred Citrus Check Inns from raising funds from the public.
It also received several investor complaints against Citrus alleging that directors of Royal Twinkle were now running their collective investment scheme through Citrus. Earlier in August 2015, it imposed a four-year ban on Royal Twinkle and its four directors for illegally raising over ₹2,656 crore in the garb of sham ‘timeshare’ holiday plans. It gave the company and its directors a three months deadline to refund the money along with promised returns to the investors.
(With inputs from PTI)