Staff Reporter

Bidders raise objections to several `deviations' in the property of its chairman

CID officials say auction of second and third floors annulled as sufficient number of bidders do not take part Fourth floor sold for Rs. 68.68 lakhs as against the market value of Rs 22.41 lakhsNext auction likely to be held within two months

HYDERABAD: The auction proceedings of the property of scam-hit Krushi Cooperative Urban Bank chairman Kosaraju Venkateswara Rao were put off abruptly again on Saturday after bidders raised objections to several `deviations' in the property.

However, officials of the Crime Investigation Department (CID) maintained that the auction of second and third floors of Rao's property located at G. S. Chambers at Nagarjuna Circle in Punjagutta was annulled after sufficient bidders could not participate in it while the fourth floor was sold for Rs. 68.68 lakhs as against the market value of Rs 22.41 lakhs. A realtor Rajiv Shroff purchased it.

Twenty-five bidders came to the Nampally Court where the auction was organised for the third time in a year. Rao's Punjagutta property comprises 7,500 sft on the second floor (registration value Rs. 81 lakhs), 5,250 sft on the third floor (value Rs 66.70 lakhs) and 2,075 sft on the fourth floor (value Rs.22.41 lakhs) of G.S. Chambers.

The auction for the third-floor was started after lunch at 2.30 p.m. Initially, two bidders participated, but the court cancelled the auction as there were no adequate number of bidders. When the auction for the second-floor began, a group of bidders raised objections asking the court and the CID to clarify `several deviations' in the property.

"We want clarifications about notices issued by the MCH against the property, besides the property was attached by Income Tax department," a bidder B. Prabhakar Rao told reporters. He said either the court or the CID should take responsibility if any problem arose after purchasing the property.

`Objections false'

Describing objections raised by bidders as false, CID Deputy Superintendent of Police (Economic Offences Wing) M. V. V. S. Raju said bidders might have formed a syndicate and wanted to purchase the property at low price. With the cancellation of auction, the fond hopes of the Krushi Cooperative Urban Bank's depositors came crashing down.