Union of India & Ors Vs. M/S Shatabadi Trading & Investment Pvt. Ltd. & Ors [2001] Insc 383 (10 August 2001)
K.G.Balakrishnan, S.R.Babu Rajendra Babu, J. :
Appeal (civil) 6055 of 1998
In respect of property comprised in 25, Friends Colony West, New Delhi [hereinafter referred to as 'the subject property'], an agreement was entered into to sell for a consideration of Rs.1.75 crores on 1.2.1991. On 4.2.1991, the intended seller and the purchaser filed Form 37-I for issuance of 'No Objection Certificate'. However, on 18.4.1991, a purchase order was passed by the Appropriate Authority and on the same day, the owner of the land was directed to surrender the possession of the subject property. In that regard, a writ petition was preferred before the High Court and on March 1, 1993, that writ petition was allowed in the light of the decision of this Court in C.B. Gautam vs. Union of India, 1993 (1) SCC 78. Subsequent to the decision in the said writ petition decided by the High Court a show cause notice had been issued disclosing the following facts:
"In the case of subject property, the apparent consideration is Rs.1,75,00,000. The plot area is 3595.32 sq. mts. Including 830.95 sq. mtrs. Declared as excess land under ULCR Act. The net plot area comes to Rs.3595.32-830.95=2764.37 sq. mtrs. If salvage value of Rs.1,64,445 is considered, the achieved land rate works out to Rs.1,75,00,000 - 1,64,445 = 1,73,35,555 divided by 2764.37 = Rs.6271 per sq. metr. We may compare the sale instance of property at 60, Friends Colony (East) which was agreed to be sold on December 5, 1990 for apparent consideration of Rs.2,65 crores. If the depreciated value of structure of sale instance is taken at Rs.11,60,000 the land rate per sq. mtr. Works out to Rs.2,65,00,000 (-) 11,60,000 = 2,53,40,000 divided by 1173.91 = Rs.21,586. If adjustment on account of time gap of
