Big Bull’s 8 flats sold for Rs 32.6 crore | india | Hindustan Times
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Big Bull’s 8 flats sold for Rs 32.6 crore

Businessman and stockbroker Ashok Samani won the bid for tainted stockbroker Harshad Mehta’s eight flats at Madhuli Building in Worli for Rs 32.6 crore, reports Urvi Mahajani.

india Updated: Feb 14, 2009 14:45 IST
Urvi Mahajani

Businessman and stockbroker Ashok Samani won the bid for tainted stockbroker Harshad Mehta’s eight flats at Madhuli Building in Worli for Rs 32.6 crore.

Special Judge D.K. Deshmukh, however, did not allow Harshad’s mother Rasila Mehta — who was willing to pay Rs 33 crore — to bid.

The court cited non-submission of the earnest amount of Rs 80 lakh, which is mandatory for every bidder, for the refusal. ‘Big Bull’ Harshad Mehta, who fell from grace after the stock market scam in 1992, died in December 2001.

On Friday, eight bidders quoted their bids for the flats. While Samani’s was the highest, Prakash Mehta and Asin Ghosh quoted the second highest bid at Rs 32.5 crore.

The final bid is much lower than the going rate — Rs 30,000 per sq ft — in the area. Property experts said it could not be called a very profitable deal because of the circumstances involved. “Buyers are very cautious about making any purchases because of overall slowdown in the economy,” said Ajay Chaturvedi, CEO of Accommodation Times, a real estate magazine.

Although the special court has closed the bid in favour of Samani, he does not get automatic confirmation as owner of the flats as the matter is pending in the Supreme Court following to a petition filed by Harshad’s wife, Jyoti.

In November, the Supreme Court allowed the custodian of properties to go ahead with the auction. Rasila’s counsel M.M. Vashi told Hindustan Times that she would appeal to the SC against the order not allowing her to bid. “We will soon file the appeal,” said Vashi.

(Inputs from Naresh Kamath)