High court slaps 15L penalty on realtor
“The concerned person must realize not only his folly but also the fact that such conduct and its effect cannot be wiped out or cleaned by offering to pay cost,” with this observation a division bench headed by the chief justice has prohibited the company from participation in future property auctions.
The high court came down heavily on the company for trying to grab land worth Rs 150 crore — Raipur-located textile mills of Omex Investors Limited.
The textile mill had closed down in 1986 and the high court ordered to wind it up in 1989. The OL took over the possession, sale committee was constituted. Out of this land, two plots of 43,108 square metres were valued at Rs 125 crore. Jay Kanan evinced interest and offered Rs 150 crore for the land, on which the high court asked the firm to deposit Rs 15 crore through demand draft towards EMD, but the company only supplied a cheque.
During the proceeding, the court came to know that the company was under impression that after the offer, if acceptable to court, it could enter into a deal with the OL. The court corrected its management and asked the OL to proceed with the process of auction with the upset price fixed at Rs 150 crore, and treat the construction company as one of the bidders.
The court asked the OL to realise the cheque, but it bounced. This irked the court. The company’s counsels tendered unconditional apology to court, which Justice KA Puj declined in September and directed the registrar to take action against the builders. The division bench, denying the company request to not take action, decided to slap fine of Rs 15 lakh.
The high court came down heavily on the company for trying to grab land worth Rs 150 crore — Raipur-located textile mills of Omex Investors Limited.
The textile mill had closed down in 1986 and the high court ordered to wind it up in 1989. The OL took over the possession, sale committee was constituted. Out of this land, two plots of 43,108 square metres were valued at Rs 125 crore. Jay Kanan evinced interest and offered Rs 150 crore for the land, on which the high court asked the firm to deposit Rs 15 crore through demand draft towards EMD, but the company only supplied a cheque.
During the proceeding, the court came to know that the company was under impression that after the offer, if acceptable to court, it could enter into a deal with the OL. The court corrected its management and asked the OL to proceed with the process of auction with the upset price fixed at Rs 150 crore, and treat the construction company as one of the bidders.
The court asked the OL to realise the cheque, but it bounced. This irked the court. The company’s counsels tendered unconditional apology to court, which Justice KA Puj declined in September and directed the registrar to take action against the builders. The division bench, denying the company request to not take action, decided to slap fine of Rs 15 lakh.
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