Supreet Enterprises would deposit ₹5,05,000 per month with IIFL by the 5th of each month, starting from June 2018, otherwise the interim stay would be revoked. This order was issued by DRT on 11.06.2018. However, Supreet made no payments, further impacting Rajwant Hotels. They did not deposit the required amount as per the order, leading to contempt of court.
Supreet’s new ploy to acquire land –
RHPL filed another case under SA 81/2020 in the DRT, where it was ordered that the petitioner’s lawyer would be heard via video conference. The respondent’s lawyer did not object to proceeding with the case. The Debt Recovery Tribunal rejected the petitioner’s application and ordered the auction to continue.
Following the auction order, India Infoline Finance Limited (IIFL), a prominent non-banking financial corporation (NBFC), took symbolic possession of the property from Supreet on 28.01.2020. Later, IIFL published an auction notice in a small local newspaper in Visakhapatnam edition (without any date) in February 2020, setting the property value at ₹10 crores and an EMD (Earnest Money Deposit) of ₹1 crore for their outstanding dues. However, no prospective bidders showed up for the auction by 20.03.2020. Subsequently, IIFL published a second auction notice on the Foreclosure website on 21.11.2020, lowering the reserve price from ₹10 crores to ₹5 crores. In the second auction held on 10.12.2020, Supreet Enterprises participated, with Ashish Kumar (Shanti Kumar’s son) placing the bid. Notably, no other bidders participated, and Ashish Kumar purchased the land, valued at ₹32 crores, for just ₹5 crores, of which only ₹2.5 crores were deposited. This raises the question as to how an auction even took place when RBI guidelines mandate at least three parties for an auction. After this auction, allegations of a fake auction were leveled against IIFL, but IIFL categorically denied all such allegations.
The main question raised in this entire case, involving Supreet Enterprises and IIFL, is about the troubling intersection of power, property, and alleged corruption in India’s real estate market. The unethical auction procedures and illegal occupation charges against Supreet Enterprises, led by Ashish Kumar and Shanti Kumar Chelluri, have cast serious doubts over the transparency in managing such valuable properties. If the charges of coercion, low-price auctions, and illegal possession are proven, many parties involved could face severe reputational damage and stringent legal action. Furthermore, IIFL’s role in this controversial auction is under scrutiny, highlighting the need for strict oversight in the financial sector, especially in large property deals. As legal proceedings progress, this case could set a precedent for handling property disputes, powerful corporations, and the abuse of influence in such transactions. It will be interesting to see how the court views this entire matter.
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