The Hindu Business Line : I-T Dept puts 2 Chennai properties under hammer

THE Income-Tax Department has once again put on auction a 48-ground plot in the upmarket Bishop Garden area of Chennai. This is the fourth time that this property is coming up for auction. The reserve price this time is Rs 22.14 crore against the Rs 27 crore when the department tried to auction it in July 2002.

The department has called for bids for another property in an office complex on Nungambakkam High Road. The reserve price for this 6,700 sq. ft property is Rs 3.98 crore.

The auction for both these properties, acquired by the I-T Department as it felt that the deal price was much lower than the then prevailing market rates, is to be held on November 11, according to the advertisement issued by the department.

The department acquired the 48-ground Grayshott in 1997 from Spencer & Co for about Rs 30-35 lakh a ground as the price quoted in the agreement between Spencer and the buyer was much lower than the prevailing market rate.

According to informed sources, Spencer & Co had entered into an agreement with Sterling Horticulture, promoted by Mr C. Shivasankaran, to sell the land.

While the going market rate then was Rs 60-65 lakh per ground, the agreement was supposed to have been signed for Rs 30-35 lakh a ground.

The sources said that the property was exempted from the Urban Land Ceiling Act as it was classified as horticulture property. That was also why Mr Shivasankaran decided to acquire the property through Sterling Horticulture, they said.

According to the advertisement issued by the I-T Department, the property is spread over 47.63 grounds with a building in an area of 657 sq. m.

The sources say that the size of the property makes it unwieldy to put up multi-storey buildings. Besides, the road on which it is situated is also not wide enough for the authorities to permit multi-storey buildings.

During the auction held last in July 2002, there were hardly six bidders and most of them were interested only in the two commercial properties in the Raheja Towers on arterial Anna Salai that were also put up for auction.

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