Harshad Mehta's Assets: Rs 2,200-Cr Released to IT, SBI

Harshad Mehta's Assets: Rs 2,200-Cr Released to IT, SBI
Nearly Rs 2,200 crore were released to the Income Tax department and the State Bank of India from the liquidated assets of the Harshad Mehta group of entities against pending claims.

The amount was released after the Supreme court on March 14 declined to stay the order of the special Mumbai court on February 25.

Following the Supreme Court's order, the Custodian (Trial of Offences Relating to Transactions in Securities) handed over amounts of Rs 1995.66 crore and 199.25 crores to Income Tax and State Bank of India respectively.

Director General of Investigations (Central) B P Gaur and chief commissioner of Income Tax Nilima Mansukhani received the payment from Custodian Satish Loomba.

Loomba said that with this payment they have squared off the principal amount of the Rs 3,400 crore of the Income Tax.

He said that the banks have been paid to the tune of Rs 600 crore till now.

"The payments are interim in nature and have been released by the custodian on the basis of undertakings submitted by Department of Revenue and SBI," said Loomba.

According to him, the amounts will be brought back if so ordered by the special court.

The special court (Trial of Offences Releating to Transactions in Securities) Act was legislated by the Parliament in 1992 to deal with the extraordinary situation arising out of the secrities scam, with the objective of recovering huge amounts of money lost by the banks.

The Custodian is the principal administrative officer under the Act for the attachment, management and liquidation of assets of notified persons, who functions under a system of concurrent judicial review by the special court.

According to a press statement issued by the Custodian, this release of money, made against the outstanding dues of late Harshad S Mehta and related entities, is the largest and first of its kind based upon a distribution proposal filed by the custodian in the special court.
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