Auction of promoter’s properties fails to generate enough funds to clear dues.
It appears that hundreds of investors who were taken for a ride by the city’s biggest financial fraud will have to wait for some more time to get back their money.
Thursday’s auction of the properties of VinvInc promoter KN Srinivasa Shastry fetched a mere Rs11.51 crore as against the expected Rs30crore.
Over 2,000 people who had been defrauded by VinivInc in 2005 with promises of huge interests on their investments, had hoped that the auction proceeds would generate enough money for their refunds.
In fact, some of the properties auctioned failed to fetch even the guidance value fixed by the government for stamp duty assessment. Sources said some of these auctions might not be approved by the government, necessitating a re-auction.
Shastry’s property at Kogilu Cross near Yelahanka and Hoskote in Bangalore Rural district were auctioned on Thursday morning. The successful bid for the 26-acre land at Ekarajapura near Hoskote was a paltry Rs4.15 crore as against its guidance value of Rs23 crore. Thirty-four out of the 36 sites at Kogilu Cross near Yelahanka were sold for Rs7.36 crore. Officials in charge of the two auctions will submit their reports to the government for approval.
Auction of the Ekarajapura land commenced at the Hoskote taluk office premises at 10.30 am and went on till 12.30 pm. Assistant commissioner (Doddaballapur) Shivaprasad wielded the gavel and Jindal Steel came up with the successful offer of Rs4.15 crore.
This land was auctioned for the second time. In March last, it had fetched only Rs50 lakh forcing the government to go in for another auction.
The Kogilu Cross properties were auctioned in Yelahanka by assistant commissioner N Chandrashekhar. The site which fetched the lowest price went for Rs15.05 lakh, while the highest price quoted was Rs47 lakh. Two sites could not be auctioned as no bidders had come forward.
Mahabaleshwara S Nuli, an advocate who successfully bid for two sites for a total sum of Rs44.10 lakh, said he bought the plots as he was confident there would be no litigation in a government auction.
Another successful bidder, businessman Rama Jogeshwara Rao, said he anticipated no legal problems as BDA had approved the site.
Hundreds of curious onlookers gathered at the auction site at Kogilu Cross. “I was not a bidder. I came here out of curiosity. It belongs to Shastry and he has been in the news for several years,” said Muniraju, a Kogilu villager.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}