17 March,2009 09:43 AM IST | | Imran Gowhar
IT dept plans to auction his property but is worried there'll be no buyers due to the real-estate slump
The income tax department, which is planning to auction some more of Abdul Karim Telgi's property in Belgaum, is in a Catch-22 situation.
The department plans to auction seven shops registered in the name of the fake stamp paper kingpin's mother, late Sharifabi Telgi, on March 24 to recover dues worth Rs 19.95 lakh.
But that's easier said than done. IT officials say Telgi owes the department a whopping Rs 300 crore but it will be difficult to recover the entire amount as most of his property has lost its value due to recession. Secondly, their location in the not-so-commercial hub of Khanapur makes them less attractive.
However, the IT department will lose money even if it hangs on to the property, with the interest on the amount rising, say officials.
Earlier auctions
The IT Bangalore circle had earlier sold three commercial complexes in the city belonging to Telgi and recovered around Rs 10 crore. Though there were no buyers initially, the Le Meridien group bought a commercial space and a bank from Mysore bought two buildings in Commercial Street last year.
Telgi's ancestral properties, including his mother's and brother's, have also been auctioned.
Telgi's properties in Mumbai which include lodges have also been seized but haven't yet been auctioned.u00a0
Rs 300 crore? What a joke!
Abdul Karim Telgi's chartered accountant I G Nanaiah disputed the IT department's claim that Telgi's due amounted to Rs 300 crore.
"Two years ago, we filed IT returns saying we had to pay Rs 2.45 crore and that the IT people could auction some of the property to recover the money. But the IT has already collected Rs 10 crore, which is more than what Telgi owes," Nanaiah added. He said theyu00a0 challenged the claim and the case is pending.
