In a judicially supervised step toward the recovery of a long-pending loan default, the Bombay High Court has authorised the auction of 25 paintings by eminent artist M.F. Husain, forming part of his "Our Planet Called Earth" (OPCE) series. The artworks were secured by the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) in connection with a ₹236 crore loan dispute with the Swarup Group of Industries, led by industrialist Guru Swarup Srivastava.
The paintings came into NAFED’s possession following allegations of loan misappropriation by industrialist Srivastava, who had commissioned 100 works from Husain in 2007 at a value of ₹1 crore per canvas. The Central Bureau of Investigation initiated proceedings in 2006 concerning alleged misutilisation of ₹150 crore from the sanctioned loan. In December 2008, a tribunal permitted NAFED to secure assets worth ₹100 crore, which included the aforementioned artworks.
In light of the recovery proceedings, an application was moved before the Bombay High Court for permission to liquidate the secured assets through public auction. The valuation report prepared by art expert Dadiba Pundole in May 2023 pegged the worth of the 25 paintings at ₹25 crore. NAFED sought judicial direction to proceed with the auction through the Pundole art gallery.
In its order dated February 17, Justice R.I. Chagla permitted the auction to proceed, directing that the Sheriff of Mumbai is permitted to auction the 25 paintings. The Court further ordered that the sale be conducted under the supervision of the Sheriff and in accordance with the procedures outlined in the notice issued by Pundole art gallery.
Pursuant to the Court’s directions, the Sheriff of Mumbai issued an auction notice in February for the sale of the 25 Husain canvases. The auction is scheduled for June 12 at Hamilton House in South Mumbai. The High Court also mandated post-auction compliance, directing that after the auction is complete, the Sheriff of Mumbai shall file a report to this Court by July 3 and obtain final directions for handover of the works.
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