Income Tax Department to invite bidders for two complexes on March 10
Properties situated on Mosque Road in BangaloreBids being invited for the fourth timeNo bids were received in the earlier auctions
BANGALORE: Two properties of Abdul Kareem Telgi, the prime accused in the multi-crore stamp paper racket, will again go under the hammer on March 10. The two properties are situated on Mosque Road here.
Income Tax Department sources said the auction is not likely to be postponed despite an appeal filed by Telgi's lawyer, M.T. Nanaiah.
In his application filed on February 23, Telgi sought a stay on the auction pending disposal of his appeal. Telgi's counsel said all the documents had not been furnished to his client and, hence, the auction should not be gone ahead with.
He said his client had been kept in the dark with regard to the auction proceedings. Mr. Nanaiah asked the Recovery Officer of the Income Tax Department not to go ahead with the auction until the appeal was disposed of.
Income Tax Department sources denied that Telgi had been kept in the dark about the auctions. The auctions were conducted only after Telgi gave his consent. The auction conducted on February 23, where no bidders turned up, was conducted with Telgi's consent.
According to departmental rules, no consent is necessary if another auction is scheduled within a month of the earlier auction.
The department is auctioning the properties to recover dues of Rs. 193 crores from Telgi. It has already auctioned Telgi's property on Palace Road here for Rs 1.43 crore.
The reserve price fixed for the two Mosque Road properties is Rs. 2.86 crores and Rs. 2.55 crores. No bids were made for these properties in the three auctions held earlier.
In the appeal, Telgi questioned the total amount of tax arrears owed by him. But department sources said a similar appeal filed by Telgi earlier was dismissed and there is no question of considering a second appeal. However, a final decision on Telgi's application will be taken before March 10, sources said.