Dalal family pay Rs12.6 crore for their flat at Chitrakoot building on Altamount Road, in south Mumbai, against market value of about Rs9 crore 

Rekha Dalal, wife of stock broker and co-accused in the 1992 securities scam Bhupen Dalal, and their daughter-in-law Veena Dalal, have repurchased their own flat in an auction, by paying a huge premium in order to retain it for the family. The flat was put up for sale by the custodian, under the orders from the Special Court. 

“The winners (Rekha Dalal and Veena Dalal) outbid other bidders by quoting a price of Rs12.6 crore. They will have to pay the rest of the money, excluding an earnest deposit of Rs20 lakh, within 45 days,” said AK Toprani, director, office of the custodian. 

According to market sources, the Dalal family was very keen to buy back the posh flat in the upscale Altamount Road area in south Mumbai, which is why they ended up paying a huge premium over the current market price. As per the current market price in the area (the rate is over Rs30,000 per sq ft) the flat would have cost around Rs9 crore. 

Earlier in September, the Special Court allowed Bhupen Dalal’s flat in Chitrakoot building to be auctioned to recover income-tax dues running into crores of rupees. Last year, a division bench of the Bombay High Court had stayed an order of the Income-Tax (I-T) department demanding that Mr Dalal pay dues of around Rs1,157 crore for the assessment years 1992 to 1994. 

According to a PTI report, Mr Dalal argued before the Special Court that the notice of the I-T department was challenged before the Commissioner of Appeals (I-T). A petition had also been filed in the High Court, which had stayed the notice. Since the notice was stayed, the auction of his flat should also be stayed, his counsel Milind Sathe had argued. 

I-T counsel Beni Chatterjee contended that the Commissioner of Appeals was slated to decide Bhupen Dalal’s appeal on 31st December against the I-T notice on tax dues. However, there was no need to stay the auction. Justice DK Deshmukh of the Bombay High Court then rejected a petition filed by the stock broker seeking a stay on the auction of his flat in Chitrakoot building. 

The stockbroker is facing cases related to the 1992 securities scam in which he is accused of diverting funds from banks to cover his losses in the stock exchange.— Moneylife Digital Team