22 January,2009 06:46 AM IST | | Varun Singh
It is not just the rumours about Harshad Mehta's eight inter-connected flats in Madhuli society in Worli being jinxed that have deterred prospective buyers. According to lawyers and brokers, the auction on February 4 may not see many bidders due to legal hurdles that can prolong the procedure to own the property even after winning the bid.
This order came after a Special Court on July 25, 2008, held that the flats of Madhuli were funded by Harshad Mehta and being properties of Harshad Mehta, can be disposed off accordingly. However, Harshad's wife Jyoti approached the SC and filed a civil appeal against this order.
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So, on November 17, 2008, the SC directed the custodian to go ahead with the process of the auction, but the plot will not be handed over to the bidder without SC's permission. The SC notice, a copy of which is with MiD DAY, states that 'the process of auction may go on but it shall not be confirmed without leave of the Court'.
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A bidder can either bid for all the eight inter-connected flats or all the five flats on the third floor or all the three flats on fourth floor.
Property advocate Ajit Jakhadi said, "Even after the bids are received, the court-appointed property custodian has to approach the SC for the future course of action. Since the matter is sub judice, the final disposal of orders on the bids can take months."
Also, in the terms and conditions of the bid, the court- appointed property custodian has stated that the final order is subject to SC's permission.
A broker said, "If there are more legalities involved in the sale of the flats, it will further discourage the bidders. Now, I don't think I will advise my clients to go ahead with the bidding."
