SC permits State to auction more Vini Vinc assets

SC permits State to auction more Vini Vinc assets

A bench headed by Justice Dalveer Bhandari also allowed the State government to auction a 21 acre land in pieces as there might not be buyers for the entire land.

Rajesh Mahale, who appeared for Shastry before the court, said the apex court allowed the State to auction the 21 acre land on the outskirts after making smaller plots.
In the auction last week, out of 36 sites gunta in Marutinagar and Yelahanka, 34 sites were successfully auctioned at a government fixed guidance value of Rs 500 per square feet. This sale fetched the government a total of Rs 7.32 crore as against the expected Rs 18 crore revenue.

On October 1, 2009, the Karnataka government had submitted an assessment report of the properties — 31 acres in Ekarajapur, Hoskote and 43600 sq ft (49 plots) at Yelahanka — which could fetch about Rs 56 crore. These properties were seized by the state authorities after Shastry was arrested for the alleged fraud.

Karnataka government Advocate Sanjay Hegde said that these lands have been assessed by a professional organisation.

On July 13, the apex court had granted interim bail to Shastry after he gave assurance to the court that he would pay back the money of the investors.
Shastry had set up ViniVinc in the early part of this decade and allegedly swindled Rs 203 crore from the investors with the promise to pay back 10 percent interest per month.

On August 8, 2008, Shastry and 19 others were chargesheeted by the state police before the IV Additional Chief Metropolitan Magistrate. The investigation revealed cash transactions of over Rs 203 crore by the ViniVinc promoter Shastry.  At least 20,184 people had invested about Rs 203,63,41,950 in the investment firm.