The Hindu : Tamil Nadu / Chennai News : Bid amount for Kanchi Trust property raised

Online edition of India's National Newspaper
Saturday, Mar 24, 2007
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Tamil Nadu

Tamil Nadu - Chennai

Bid amount for Kanchi Trust property raised

Special Correspondent

Judge asks bidders to say what they propose to do with assets

CHENNAI : Shriram Properties Limited, which on Thursday quoted Rs. 220 crore for the 45.88-acres of land and hospital buildings of the Sri Kanchi Kamakoti Peetam Charitable Trust in Perumbakkam, near here, upped the bid to Rs. 240 crore on Friday.

The First Bench comprising Chief Justice A.P. Shah and Justice K. Mohanram before which the auction came up for confirmation, directed the participants to deposit 10 per cent of the bid amount in court by March 28. It also asked the parties to file individual affidavits detailing what they proposed to do with the assets. The Judges made it clear they would pass an appropriate order only on the basis of these details.

Earlier, counsel for the trust told the court that they expected the prospective buyers to continue the hospital services from the premises. He, however, left the decision to the court.

Facing competition from some other companies, Shriram Properties Limited raised its bid by another Rs. 20 crore on Friday. On Thursday the company filed an affidavit, stating that it would deposit 10 per cent of the Rs. 220 crore within 24 hours of confirmation and the balance in three months, subject to delivery of the assets with clear and marketable title.

Last year, the trust approached the court for permission to sell the trust properties, in Perumbakkam village near Chennai, as it had suffered a loss of Rs. 22.62 crore since 2003. It said loan repayment and interest commitments had created such a "compelling situation."

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