Capital markets regulator Sebi will auction 17 properties of KBCL India Ltd on December 23 to recover money illegally collected from investors.

The regulator has initiated the process for the sale of assets after KBCL India Ltd, its directors Rakesh Kumar, Vishvnath Pratap Singh and Shashi Kant Mishra failed to refund the investors' money.

As many as 17 land parcels in Uttar Pradesh will be auctioned at a reserve price of Rs 4.23 crore, according to a notice issued by Sebi on Friday.

Quikr Realty has been engaged by Sebi to assist it in the e-auction, while C1 India has been appointed as the e-auction service provider.

As per the notice, the regulator said bidders should make their own independent enquiries regarding the encumbrances, litigations, attachments and acquisition of liabilities of the property put on auction, prior to submitting their bid.

The Securities and Exchange Board of India (Sebi) has invited bids for the sale of properties in the recovery proceedings against KBCL India Ltd and its directors -- Rakesh Kumar, Vishvnath Pratap Singh and Shashi Kant Mishra.

Sebi said the auction will be conducted online on December 23 from 11 am to 1 pm.

KBCL India Ltd had mopped up money from investors without complying with regulatory norms.

In May 2014, the markets watchdog restrained KBCL India Ltd, and its directors from raising any money from the public.

In its probe, Sebi found that KBCL (formerly known as Kalpataru Biotech Corporation) was running a Collective Investment Scheme (CIS) without requisite approvals and registration from the market regulator.

Kumar, Singh and Mishra being the directors of KBCL were also liable for the violations committed by the company.

KBCL India Ltd had mobilised funds to the tune of Rs 118.69 crore as of March 31, 2012.

"Purchaser shall participate in the e-auction on his own behalf and no third-party intervention, like authorised agent/ representative, would be permitted.

"The successful bidder shall bear the charges/ fee payable as per law for the transfer of the property in his / her name. All taxes shall be borne by the purchaser," the notice said.

In July, Sebi has lined up 19 properties of KBCL India Ltd worth Rs 3.54 crore for auction.

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