Harshad Mehta's flats to be resold, previous bidder to appeal

MUMBAI: The Bombay High Court has ordered a fresh auction of 8 flats belonging to Harshad Mehta, the kingpin of securities/share market scam of 1992, but the highest bidder from previous auction is going to challenge this order, his lawyer said.

Justice D K Deshmukh, presiding over the special court which handles the cases related to 1992 scam, ordered a fresh auction of flats in Madhuli building in upscale area of Worli, South Mumbai, last week.

Auction was ordered afresh as Supreme Court set aside the earlier auction ordered by the special court in 2008.

Justice Deshmukh also asked Ashok Samani, whose bid of 32.6 crore had won last time, to take back the earnest money he had deposited with the court custodian in four weeks.

However, Samani's lawyer advocate Ajay Panicker said in a statement here that he would be challenging the order.

According to Panicker, there was no need to conduct a fresh auction, and court interpreted Supreme Court's order wrongly.

Harshad Mehta, also known as "big bull", died while in jail in December 2001, but his family continues to live in the eight interconnected flats in Madhuli. The sale of flats was ordered to recover some of the tax dues of Mehtas.