Former Bangalore Mahanagara Palike (BMP) commissioner K Jairaj has refuted charges that the Palike had sold Divyashri Chambers building, located at the posh Langford Town, for a song.
Recently, the Yediyur Corporator N R Ramesh had alleged that a property with a present market value of Rs 200 crore was sold to Shyamaraju and Company for Rs 1.2 crore in 2006-07. The decision to sell the property was taken in 1995 by the then BMP council when the value of the said land, situated next to hockey stadium, was about Rs 50 crore, Ramesh had claimed.
He went on to add that the Palike did not revise the price even after 12 years when the sale deed was executed.
Rubbishing the charges, Jairaj said the allegations that the building was sold for Rs 1.2 crore is “preposterous.” The value of the BMP’s share of 40 per cent in the joint venture project with Shyamaraju at Akki Thimmanahalli (Langford Town) was decided in arbitration proceedings consisting of Justice Jaganath Shetty, Justice R B Desai and M V S Rao.
The arbitration decree was passed on September 7, 2001 for a sum of Rs 28.70 crore which Shyamaraju paid to the then BMP. Further, two sale deeds were executed on November 24, 2000 and May 21, 2003. This action was preceded by a comprehensive financial, engineering and space audit undertaken by the BMP, at his behest, of the joint venture building to correctly assess the BMP’s 40 pc share in the property.
Calculations disputed
Shyamaraju and Company disputed the BMP calculations of interest payment, carpet area and construction phasing.
“The arbitration was ordered in view of this dispute,” Jairaj said. The arbitration ordered Shyamaraju to pay Rs 28.8 crore and the developer paid it. “The allegations made by Ramesh are unfounded,” he added.
He also termed the allegation baseless that the BBMP and Shyamaraju and Co sold the Palike property to Indus Entrepreneurs – represented by Poornima Jairaj and Dr Sridhar Mitta for Rs 1.2 crore.
Sale deed
He said The Indus Entrepreneurs ( TiE), a global organisation engaged in promoting entrepreneurship in the IT sector, purchased the office space measuring 2,019 sq ft in “a wing” of Divyashri Chambers from Shyamaraju and Co for a consideration of Rs 1.2 crore. A sale deed dated March 21, 2007 was executed between Shyamaraju and Co. the power of attorney holder for the BMP represented in turn by K G Gadiyar and the Indus Entrepreneurs- represented by Poornima Jairaj and Dr Sridhar Mitta.
“Ramesh, in his allegation, has tried to make out that the ‘entire’ BBMP property in Divyashri Chambers was sold for a ‘song’ (Rs 1.2 crore) to The Indus Entrepreneurs. The facts are that the BMP’s 40 pc share was already sold to Shyamaraju for a sum of Rs 28.7 crore. Shyamaraju, in turn, has sold a portion of his property amounting to 2,019 sq ft, to the TiE,” Jairaj added.
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