Sachdeva8217;s assets to be auctioned

NEW DELHI, SEPT 10: Two properties belonging to Pawan Sachdeva of M S Shoes are to be auctioned off on October 14, to help pay off his du...

NEW DELHI, SEPT 10: Two properties belonging to Pawan Sachdeva of M S Shoes are to be auctioned off on October 14, to help pay off his dues to Allahabad Bank amounting to Rs 32 crore. An order to this effect has been issued by the Debt Recovery Tribunal in New Delhi. The two properties to be auctioned are in Gurgaon.

Valuations of other properties belonging to him, his wife Sadhna, as well as Mrs Urmil Suri, a director in M S Shoes, are being carried out at present, and may also be auctioned. Some of these reports were filed in the court earlier last week.

In all, nine properties have been attached by the court, and orders have been passed that they are not to disposed off by the owners. These include a plot in Punjabi Bagh in New Delhi, a farm house on the Delhi-Jaipur highway, a house in New Friends Colony in New Delhi, and a factory in Rohtak Road. The properties to be auctioned on October 14 are a factory with 4.3 acres of land near the Maruti factory in Gurgaon, and 13.6 acres of land in Kherki Daulavillage in Sohna, Gurgaon.

In all, Sachdeva owes various banks and financial institutions over Rs 200 crore, and some more banks are now contemplating filing cases in the Debt Recovery Tribunal. Most of this money was borrowed by Sachdeva to fund either his bid to set up a hotel-cum-guest-house complex and a yarn unit. Others who Sachdeva owes money include the IDBI Rs 80 crore, State Bank of Patiala Rs 35 crore, UTI Bank Rs 10 crore, State Bank of Travancore Rs 19 crore and the Tourism Finance Corporation Rs 17 crore.

At one time, Allahabad Bank had even argued that HUDCO had confiscated Rs 67 crore belonging to Sachdeva, and that this amount should be used to pay off its dues. HUDCO, had, however, contested this and argued that the Allahabad Bank recovery process should not be linked with its case.

HUDCO had confiscated this amount deposited by Sachdeva with them as a first instalment for a hotel and a guest-house complex in New Delhi8217;s Andrews Ganj. Since Sachdeva then failed to makesubsequent payments, under the contract, Hudco retained the funds and cancelled his contract 8212; this is the case where urban affairs minister Ram Jethmalani had tried to help Sachdeva, and has come in for a lot of flak.

Jethmalani had argued, incorrectly say experts, that Sachdeva was wronged by HUDCO and should therefore be given possession of the guest house complex in Andrews Ganj. HUDCO, as well as the secretary of the urban affairs department, Kiran Agarwal, have been arguing that the case is in court and that HUDCO has a very strong case since Sachdeva was given more than a year to make the payments but could not do so as he was broke.