Department of I-T auction floor belonging to defendant in agreement with Bofors

NEW DELHI: In the first recovery of its kind from an alleged reward in the Bofors arms business, the Income Tax department successfully auctioned an apartment belonging to a defendant in an elegant town of Mumbai for Rs 12.02 crore , a little above the reserved price set by the Department.

After Chadha's death in 2001, his son Hersh was in possession of the department. When Chadha was accused by the IT department of having received 65 million rupees in bribes in the Bofors Howitzer arms deal in 1987 in which the CBI dragged the name of former Prime Minister Rajiv Gandhi, but the Delhi high court withdrew The charges later. The I-T has filed a lawsuit of Rs 224 total crore pending with interest and penalties until last year against Chadha.

The Bofors agreement, for the supply of 400 Howitzer guns to the Indian army, was awarded to the Swedish firm AB Bofors in 1986 by the government of Congress, led by the former prime minister. Rajiv Gandhi . It was later claimed that Rs 65 crore was paid as a bribe to close the deal.

The fifth floor auctioned (E-1 with garage and storage) in Palacimo, Silver Oak Estate at Road is very close to Breach Candy Club and Mahalaxmi Temple. The property was in legal possession of Hersh Chadha after the death of his son (the flat was given by Win Chadha to his grandson, who also died later).

The I-T department went through years of legal battle before attacking the floor last year and taking possession. There was currently no suspension or any pending legal obstacle at his disposal, said a senior I-T official.

The apartment has been purchased by Eddie N. Palia, a resident of the same building, for Rs 12.02.51,000 against the reserved price set by the I-T department at Rs 12 crore. I-T officials were happy with the proceeds from the sale, since a similar attempt by a government bank recently to auction another floor on the third floor of the same building found no buyer.

Hersh Chadha, according to sources, did not respond to the auction notice and is believed to live in Dubai. The auction was conducted by the recovery officer of the international tax division of I-T.

Interestingly, the CBI had filed an appeal in the Supreme Court last year seeking setting aside of the Delhi high court order of 2004 where it had dropped charges of payoffs against Rajiv Gandhi citing lack of evidence.

The CBI had claimed that the previous congressional regime did not allow it to appeal against the HC ruling of February 2004. By requesting an urgent hearing, the agency had claimed that it had received more details to prove the payment charges against the Hinduja brothers and others. if.