NCLT stays demolition of erstwhile Hyderabad Stock Exchange property

Tribunal's decision based on plea filed before it, questioning credibility of property sale deed

The National Company Law Tribunal (NCLT) at Hyderabad has issued an interim order to stop demolition of erstwhile Hyderabad Stock Exchange (HSE) building in Somajiguda.

The six-storeyed building was lying vacant for many years until Boorugu Ravi Kumar of Boorugu Infra Projects (BIPPL) and Shiva Kumar Komaravelli from Hyderabad Securities and Enterprises (HSEL) signed a term sheet to purchase the 17,700-sq yard Somajiguda premises for Rs 124 crore in August 2016. This was after majority of the shareholders voted via postal ballot, to sell the property at that price.

Later Ram Swaroop Agrawal, along with 15 members, filed a petition before the NCLT, Hyderabad Bench and questioned the credibility of the deal. They alleged that HSEL had entered a sale agreement with BIPPL for a price that was almost 50 per cent lower than the prevailing market price.

Agrawal said, "BIPPL did not even exist when HSEL has issued newspaper advertisement in September 2015 to invite expressions of interest from builders. It does not have any previous track record and credentials to make it eligible to at least bid for the project."

But, according to Shiva Kumar, BIPPL is a special purpose vehicle (SPV) of 12-year old Pranava Avenues, which has completed several commercial and residential projects in the city. "Other builders were not ready to take up this project as they were afraid to deal with 297 members. This is a good deal for shareholders who were in depression as the building got stuck for eight years," he added.