Harshad Mehta's Mumbai property to be auctioned

A Mumbai property that involves late Harshad Mehta, the infamous stockholder, has been put on sale. The property located in Vandana Cooperative Housing Society (CHS), Juhu measures about 1,150 square feet of super built-up area and is being auctioned by inviting tenders. The office of custodian, The Special Court (TORTS) Act 1992, Ministry of Finance, Government of India seized and put the property on sale.

The auction will be held on January 9, at the custodian's office in Mumbai. While no specific rate has been quoted by the custodian, people who have seen the building say that the flat should fetch up to Rs six crore as it is sea-facing.

The property attached belonged to late Sushilaben J Shah, a partner of Romil Exports, who is also a judgment debtor of Harshad Mehta and Orion Travels Pvt Ltd — both notified entities and parties by the custodian. According to lawyers, a judgment debtor is a person against whom an order has been passed to repay the debt. The custodian appointed in such cases can deal to fetch the money and repay the debt. The custodian can attach the property and then auction it.

The property located at Janki Kurtir, in Juhu, can be inspected by prospective buyers between December 10 to 12 between 10.30 am to 12.30 pm. A representative of the custodian will be present at the premises on the dates of inspection.

A resident of Janki Kutir said the building is sea-facing and has a good view. The flat can be sold at a price above Rs six crore.

Yashika Rohiira, a realtor from the western suburbs said, \"This is an old building and considering its proximity to the sea, the flat should fetch up to Rs six crore and other concerns like the condition of the building and the flat will also come into play while deciding on a suitable amount.\"

On being contacted, a senior official from the custodian's office, dealing in the property said, \"We haven't attached a reserve price, we have carried out an evaluation which we will submit to the court. The bid has to be submitted to our office and the auction will be then opened.\"

The prospective buyer will have to submit his bids in a sealed envelope at the Mumbai office of the custodian, by 2 pm of January 9. The bid envelope should also include a demand draft/banker's cheque/pay order of a Public sector bank for five per cent of the bid amount.

After the offers are opened, a report shall be placed before the Special Court (TORTS) for considering the orders for sale in favour of the highest acceptable bidder. Acceptance of the bid will be subject to the approval of the Special Court. The Special court also reserves the right to accept or reject any of the offers or bid that may be received for the purchase of the property without assigning any reason whatsoever.

Earlier in October, the same custodian had put another property involving Harshad Mehta, a commercial unit at New Marine Lines's Dalamal Chambers measuring 283 square feet, for auction. According to the officer, they received one bidder for it; however, he didn't disclose details of the bids.