Three months after mid-day's report, two directors of Varun Industries, Kiran Mehta and Kailash Agarwal, stand accused of defrauding ten banks to the staggering tune of ₹2,555 crore. In response to this elaborate scheme, Indian Bank, one of the affected institutions, has taken decisive action by listing the directors' flats for public auction.
E-Auction Details
The bank's Asset Recovery Management Branch has scheduled the e-auction for July 21st. Prospective bidders are invited to inspect the properties on July 13th and review the associated documents on July 14th. The flats, situated within the same development, range in size from 722 to 775 square feet each.
Auction Terms
The base price for these assets has been established at ₹15.25 crore, with bidding increments set at ₹10 lakh. Furthermore, each bidder is required to submit an earnest money deposit (EMD) of ₹50 lakh for each flat they intend to bid on. The flats are presently under the custodianship of the bank's Fort branch.
Bank's Statement
A senior officer from the Asset Recovery Management division confirmed the sale, elaborating, “We are thoroughly reviewing the existing agreement and have formally notified the directors. In light of their non-responsiveness, we are pursuing all available legal avenues to recover appropriated funds by selling the property they offered as collateral.”
Expert Commentary
Industry experts draw parallels between this auction and the sale of Vijay Mallya's properties, suggesting that these properties, much like Mallya’s, might struggle to attract investors. This assessment is compounded by the fact that the original four flats have seemingly been merged into two larger units. Real estate specialists also note that the combined valuation of the 19th and 20th floor units at Vardhman Heights in Byculla stands at ₹15.25 crore.