The auction of properties belonging to Harshad Mehta and Pallav Sheth, among the two accused in the securities scam, received a poor response in Mumbai yesterday with few bidding for it.
The special court, set up to hear the cases relating to the scam, has subsequently called for a re-bid on July 16.
The properties put up for sale included both office premises and flats in south Mumbai.
There were 20 flats in Gopal Mansion belonging to Velvet Holdings (pvt) Ltd, a Harshad Mehta group company, a three-room apartment in Laxmi Bhavan, along with a garage.
Officials at the custodian special court (trial of offences relating to transactions in securities) said they received only five bids. The price fixed was Rs 10,000 per sq ft for the properties belonging to Pallav Sheth and Rs 14,000 per sq ft for Harshad Mehtas.
The offers we received were very low. For Pallav Sheths properties, the maximum offer we received was Rs 10,000 per sq ft. The judge asked the bidders to revise their offers to make it Rs 12,000 per sq ft. Since no one came forward, the bidders were given another chance to reconsider their offers, an official said.
The slump in the real estate market might have forced the bidders to quote low prices. Otherwise I dont think there is any reason why properties in Churchgate should fetch such low prices. Gopal Mansion could be a different case, it is badly in need of repairs, an official said.
The court also put up for auction 160 shares of Rs 100 each of Shree Hanuman Co-operative Housing Society Ltd and 255 loan stock bonds of the society, belonging to Pallav Sheth, a debtor of Fairgrowth Financial Services Ltd.
The office premises offered to bidders belonged to Sheth, which is located in Mittal Court at Nariman Point. Besides, there was a car parking space in the same building and five shares of Rs 50 each of Mittal Tower Premises Co-operative Society Ltd, and incidental membership rights of the society.
