The special court hearing the cases related to the securities
scam 1992 involving Harshad Mehta and others on Friday
released Rs 400 crore from the custodian's funds as pending
arrears to the Income-Tax (I-T) department. This puts
an end to the 10-year-old legal battle of the I-T department
for the Big Bull's arrears.
the development, senior IT officials said: "The State
Bank of India [SBI] vehemently opposed the special court's
move to release Rs 400 crore to the I-T department in
the court." SBI had reportedly raised a claim of
Rs 3,000 crore from the custodian.
in the custodian's office said as per the laid-down rules,
the first priority for availing of the share in the attached
property of the notified parties goes to the I-T department
under the act of various government departments. The second
priority is given to banks and financial institutions
the I-T department and SBI is now making all-out efforts
to recover its funds from the custodian, who looks after
the attached properties of the notified parties and is
even ready to strike a compromise on the total interest
valuation, which is over Rs 1,500 crore. SBI has already
made provisions for Rs 700 crore in its books.
bank is also looking for the share of the late Big Bull's
real estate, which can be attached by the custodian to
settle the dues of the bank. The I-T department had filed
a suit way back in 1993 in the special court headed by
Justice S N Variava. The custodian has already sold benami
shares of Mehta worth Rs 750 crore.
Associated Cement Company shares will the last in the
benami lot after which the custodian will target the real
estate properties of the tainted broker (See '').
According to custodian sources, the sale of the real estate
is expected to fetch around Rs 100 crore. All these transactions
are expected to be completed in the next seven to eight
majority of the benami shares have been purchased
by FIs and banks (like Life Insurance Corporation and
State Bank of India). The FIs picked these shares at a
discounted price compared to the current market price.
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