HC postpones auction of PAL-Peagout property

Mumbai, Dec 4 (UNI) The Bombay High Court today deferred till January 15, auction sale of PAL-Peagout property in Kalyan, that is expected to fetch more than Rs 700 crore, as the Maharashtra government today moved the court claiming rights on one third of the property.

Under directions of the High Court in earlier round of litigation, official liquidator had invited sealed proposals for auction sale of the company's property at Kalyan. But, raising doubt over terms and conditions of company's liabilities, Citra Developers moved the court, saying the official liquidator has not all liabilities and there was no clear answer on - whether buyer will have to pay the debts irrespective of bid price or not.

Today, when Citra Developers plea came for further hearing, Assistant Government Pleader Mattos informed a single judge bench of Justice S J Wajifdar that the state has moved another plea claiming right over more than 2.87 lakh square meters out of total land of 7.85 lakh square meters. AGP Mattos submitted that the state land fell under class II occupancy land and state government's prior permission was required wherever such properties are disposed off.

Stating that it also gives government right over 75 per cent of unearned profit in the deal, Mr Mattos urged the court to reserve state's part of the sale proceedings while giving nod to the sale proceeds. But, instead of allowing the sale to proceed as scheduled on December 10, the court postponed the sale till January 15.

On last date of hearing when the bids for the property were to be opened, the liquidator had disclosed debts of Rs 356 crore, including Rs 122 crore due to the workers and staff members of the company and that led to postponing the sale.

UNI