Pune: The Mumbai High Court (HC) has attached two properties of city-based builder Sanjay Kakade, who is also Rajya Sabha MP and has ordered him to pay Rs 260 crore to ILFS Realty Fund (part of IL&FS), else his attached properties and other personal assets will be auctioned to recover the amount.
Accordingly, the court receiver on Tuesday took over the possession of around 19 acres of Kothrud land where the MP is developing Kakade City/Kothrud Baug. Now, he can no longer utilise any part of the land for any purpose other than paying back IL&FS. The other property include 10.17 acre land parcel owned by Kakade and his wife Usha Kakade in Khadki Cantonment.
As per the HC order dated February 22, Kakade has to pay back Rs 260 crore to IL&FS in a year. “If he does not make this payment, all his personal assets (a list of which he has to submit to court by March 8) will be sold off to recover the amounts due to IL&FS,” the order states. Kakade and his wife have personally undertaken and assured the HC that they will make this payment, if the payment is not made as per the schedule promised by the Kakades, the High Court can take suo motu action and treat this as contempt of court.
As per the execution application, ILFS Realty Fund is a FDI investor in real estate. It had invested Rs 75 crore in 2007 in Kakade City on the promise that the project will be developed. But when there was no progress, the fund initiated arbitration process in 2011. Kakade objected to it and tried to delay it but was unsuccessful. The arbitration panel, comprising retired judges of Supreme Court gave an arbitral order and Kakade City Construction Private Limited also signed consent terms with ILFS Realty Fund in 2014 to pay back Rs 178 crore.
But Kakade didn’t pay the amount.
On the other hand, Kakade sold a part of the project land (about 7 acres) to his subsidiary company, mortgaged it to Indiabulls Housing Finance Limited, took a loan of Rs 100 crore and used up the proceeds of the loan for personal purposes.
ILFS Realty Fund brought this to the notice of the High Court and the arbitral panel which ordered the ILFS Realty Fund’s lawyers to proceed to file a contempt of court petition in the High Court against Kakade and his company.
Last week, the High Court ordered Kakade to remain present in person because of constantly misrepresenting to the court.
On February 21, Justice G S Patel gave him a major dressing down and suggested that action including arrest can be done on the same day.
The MP gave a personal assurance to HC to pay up the dues in the end. The court has directed Kakades not to seek further extension of time. Kakade did not respond to calls and text messages from Sakal Times for his comments.