Panel set up for Agri Gold properties

Three-member committee to oversee process of auction

A high court division bench comprising Acting Chief Justice D B Bhosale and Justice S V Bhatt on Friday delivering the final verdict on a PIL filed by Agri Gold Depositors and Agents, constituted a three-member committee to deal with Agri Gold scam properties which will be a retired high court judge.

The bench has said it will name the head of the committee by October 12.

The court, while giving permission to sell the properties of the company, laid certain guidelines and conditions that the entire process should be properly carried out under the supervision of the committee set up by it.

“The disbursement of depositors amount will also be monitored under the jurisdiction of the committee and any attempts of the Agri Gold to mislead the committee and court will be severely put down,” said the court verdict handed down today .

The bench also said the 14 properties of the Agri Gold group of companies will be auctioned during Phase 1 and another 6 properties during Phase 2.

The bench made it clear that the three-member committee will oversee the process of auction of properties by depositing the proceedings of sale to a special account opened in the name of Registrar of the high court.

Direction of the bench
However, the bench directed the state government of Andhra Pradesh to auction the properties only through e-auction method.

 In its verdict, the bench also warned the Agri Gold management to assist the e-auctioning process by declaring true value of the assets.

Andhra Pradesh Finance Secretary P V Ramesh has announced the decision of e-auctioning of Agri Gold lands after a review of the report submitted by a select committee led by K Narasimhamurthy, a well known cost accountant and chairman of a committee set up for revival of loss making Cooperatives and NBFC's in the state.

In the month of February, the Andhra Pradesh government had attached the properties of Agri Gold group of companies to an extent of 16,857.81 acres and 82,207 square yards of land in Andhra Pradesh and also 2.5 kg of gold, Rs 7.5 lakh cash and 54 four-wheelers following a probe by state CID.

Avva Venkata Seshu Narayana Rao, chairman Agri Gold group of companies, moved the high court in June challenging the government’s decision to attach his properties.

“The company has Rs 16,000 crore worth of assets all over the state. Let the court or the state constitute a committee to sell away the required assets to clear the Rs 6,700 crore dues,” he said speaking with reporters in an effort to avoid attachment of the company assets.

Suicides
The failure of the Agri Gold had led to suicide of seven persons, including two women. Most of the depositors were heart broken when their cheques issued after maturity of their deposits by the company had bounced.

Meanwhile, several depositors who were eagerly waiting for the directions of the HC bench, said that they were happy that the process of sale and distribution of the amounts will be under the strict vigil of the court.
 
*The bench has said it will name the head of the committee by October 12
*The bench also said the 14 properties of the Agri Gold group of companies will be auctioned during Phase 1 and another 6 properties during Phase 2
*In its verdict, the bench also warned the Agri Gold management to assist the e-auctioning process by declaring true value of the assets.