Yash Birla cheating case : Rs 30 cr plot to be sold to repay investors

Mumbai: The investors who were distressed over the failure of Yash Birla’s company heaved a sigh of relief on Wednesday when a a special Maharashtra Protection of Interest of Depositors (MPID) court allowed the auction of an Oshiwara plot worth Rs 33 crore, belonging to Yash Birla, in a bid to repay investors in a cheating case.

The court said: “CA [competent authority] to proceed to auction sale of the property at Oshiwara. If the accused as per the statement made by them are not ready to incur the expenses of publication [of notice in the newspaper] , the CA to publish the sale notice from the amount already seized in the bank account and file compli ance report.”
The court directed the investigating officer to extend support to the CA. “CA to complete the process of publication of notice within 15 days,” it added.

Birla’s advocate Ramakant Gaur said that the property had been surrendered earlier and a no objection was already given by them to liquidate it.

Meanwhile, the economic offences wing (EOW) filed its reply, opposing Birla’s bail plea.The interim bail granted to Birla, will continue until the next hearing on January 12.

During last month’s hearing, the court came down on the probe agency for not filing a reply to the bail plea. “The investigating officer is granted last chance to file its reply , failing which the matter will be heard, assuming prosecution do not want to file reply,” the court said.

His bail plea stated that this is a plain and simple case of failure of a company which was wound up due to its own financial constraints.

In November, the EOW had also sought the attachment of Birla House. The agency has already attached properties worth Rs500 crore that belonged to Birla and other accused in the case. But they later learnt that there is a Rs1,100 crore loan against the attached properties.This made investigators request the government to attach Birla’s other properties worth Rs 687 crore. These properties are not related to the case.

The agency probing a cheating case against Birla and his firm Birla Power Solutions had filed a chargesheet before a special court for cheating.