The Madras High Court Bench here has ordered a Crime Branch-Criminal Investigation Department (CB-CID) probe into alleged fraud committed in the auction sale of a property belonging to a private spinning mill, declared as a sick unit, with the connivance of two district court staff here. Justice A. Selvam ordered for transfer of the probe from the local police to the CB-CID while allowing a petition filed by one Subramanian, who had supposedly entered into an agreement with the Mahalakshmi mill for settlement of its liabilities including bank credit.
According to the petitioner, the mill was taken over by Tamil Nadu Industrial Investment Corporation after it was declared as a sick unit. Subsequently following a civil case instituted by one of the creditors, the mill’s 10.36 acres of land, worth about Rs. 10 crore, was brought for auction sale.
One of the bidders, in connivance with two court staff, purchased the property for a throwaway price of Rs. 25 lakh. The petitioner alleged that the auction was conducted by creating forged documents to prove as if the mill was put on notice though no such notice was served before the auction.
He had filed the present case on the ground that the police failed to initiate action despite a specific complaint lodged by him.
