Stockbroker Bhupen Dalal's flat to be auctioned for I-T dues

In a setback to stockbroker Bhupen Dalal, a special court has allowed his posh flat in upscale Altmount Road area here to be auctioned to recover income tax dues running into crores of rupees.

Justice DK Deshmukh of the Bombay high court yesterday rejected a petition filed by Dalal seeking a stay on the auction of his flat in `Chitrakoot' building.

Dalal had sought the stay on the ground that a high court division bench in September last had stayed an income tax department's order asking him to pay tax dues to the tune of Rs1157 crore for assessment years 1992-93 and 1993-94.

He argued that the notice of Income Tax was challenged before the commissioner of appeal (I-T). A petition had also been filed in the high court which had stayed the notice. Since the notice was stayed, the auction of his flat should also be stayed, Dalal's counsel Milind Sathe argued.

Income tax counsel Beni Chatterjee contended that the Commissioner of Appeals was slated to decide, on December 31, Dalal's appeal against the I-T notice on tax dues. However, there was no need to stay the auction.

Dalal is also facing cases related to the 1992 securities scam in which he is accused of diverting funds from banks to cover his losses in the stock exchange.