Court directs status quo on sale of Sikandra road property
By IANSFriday, September 17, 2010
NEW DELHI - The Delhi High court Friday directed status quo in a case related to the sale of a Rs.117-crore residential property at 7, Sikandra road in the national capital.
The court slated the next hearing in the case Oct 22.
Prime Commercial in a petition has challenged the sale the property to Triveni Infrastructure and the manner in which the court granted what it called “undue concessions to Triveni” and deprived it (Prime) of its entitlement under the auction terms to buy out the property.
Prime, the second highest bidder, has sought a fresh auction of the property. It has offered to pay Rs.150 crore in keeping with the appreciation of the property value in the last four years.
The petition alleged that Chetan and Nitin Sabharwal, sons of former Chief Justice Y.K. Sabarwal along with their partner Kabul Chawla, chief of real estate company BPTP, despite having no stake in the Triveni Infrastructure, had paid the bid amount.
It challenged the April 2010 sale deed which revealed that the three partners had not participated in an auction in September 2006 on which a two-judge bench declared Triveni Infrastructure the highest bidder.
Triveni was required to pay 25 percent of its bid amount, Rs.117 crore, within a week and the balance within three weeks thereafter, subject to the condition of the property being converted from leasehold to freehold.
But Triveni became liable to pay the 75 percent component only in February 2009. It was then that a succession of single-judge orders resulted in the payment being finally made, with a Rs.5 crore penalty, in April 2010, that too by the sons of Sabharwal and Chawla, although they had no formal stake in Triveni, Prime Commercial alleged.
