The Delhi High Court on Friday restrained the two sons of former Chief Justice of India Y.K. Sabharwal from selling or developing a 2.70-acre piece of land in Lutyen’s Delhi, which they acquired in April 2010 using controversial judicial orders in their favour.
The 7, Sikandra Road plot originally belonged to Kaula Estate and following a dispute among its co-owners the issue went to the high court, which ordered an auction of the property in August 2006.
Triveni Infrastructure’s offer of R117 crore was the highest bid followed by Prime Commercial’s (R115 crore). But following a series of interventions spanning four years after Triveni failed to fork out the amount within the stipulated date, the court eventually allowed the sale deed to be executed in favour of a subsidiary company of Triveni
Infrastructure, the Sabharwal brothers and Kabul Chawla of real estate company BPTP on April 19, 2010. The land’s current value could top several hundred crores.
A day later, Justice Rajiv Shakdher allowed the plea leading to transfer of the plot in favour of the Sabharwal brothers and Chawla.
On Friday, however, a division bench headed by Justice Vikramjit Sen passed the “status quo” order regarding the title and possession of the property after Prime Commercial moved an application contending it had a vested right in the property because Triveni had defaulted.
On behalf of Prime Commercial, senior counsel Vikas Singh and P.K. Agrawal told the court that despite being strangers to the auction, the Sabharwal brothers — Chetan and Nitin — and Chawla purchased the property.
Vikas Singh cited Delhi HC's September 26, 2006 order that clearly said if the highest bidder defaulted, the bid of the second highest bidder had to be accepted. He alleged in the process Sabharwal's sons and Chawala caused a revenue loss of about R20 crore to the state exchequer as no stamp duty was paid on the deal.