The Income Tax Department will next month auction a flat located in the posh Malabar Hills area of south Mumbai in order to recover over Rs 224 crore dues from Hersh Chadha, son of late Win Chadha, an alleged middleman whose name cropped up in the Bofors deal case.
The three-BHK flat in the Palacimo residential society will go under the hammer on November 5 at the Air India building at Nariman Point.
The tax recovery unit (international taxation) of the department here has issued a ‘proclamation of sale’ notice with regard to the flat in connection with an alleged tax default case against Hersh Chada, who is also the legal heir of Win Chadha.
Win Chadha died in 2001 at the age of 77.
The CBI had registered an FIR in 1990 against Martin Ardbo, the then president of AB Bofors, Chadda and the Hinduja brothers for probing alleged corruption charges in the purchase of 400 155mm howitzer guns for the Indian Army.
The case had become a political hot potato with the name of former prime minister Rajiv Gandhi and others being dragged into the scandal after the Swedish Radio on April 16, 1987 claimed that the Bofors company had paid bribes to top Indian politicians and defence personnel to bag the deal.
The Central Bureau of Investigation had also charge-sheeted Chadha who died during the course of this case.
The income tax dues pertain to alleged receipt of commission from Bofors, a Swedish company, by Win Chadha that was allegedly not disclosed by him to tax authorities in India.
The I-T asset sale notice, accessed by PTI, states that a sum of Rs 224,02,34,972 (plus interest amount) is due on “defaulter” Hersh W Chadha as he is the legal heir of Win Chadha.
The flat that is up for auction has been identified as ‘E-1, Palacimo, 5th Floor, Silver Oak estate, Bhulabhai Desai Road, Mumbai-400026’.
The department, in the auction notice, has described the rich features of the immovable property stating that it is located in an upmarket residential and semi-commercial posh locality of south Mumbai.
“The area has a good network of roads and many famous landmarks. The coastal road which is coming up will further enhance the connectivity manifold.
“Also, the area has many famous landmarks like Breach Candy Hospital, Breach Candy Club, Mahalaxmi Temple, Sophia College, Amarsons and Tata Gardens,” the I-T notice said.
It states that the flat up for auction has a “marbonite floor and a decorative false ceiling, is done with POP (plaster of paris) and has a built-up area of 191.33 sq mtrs.”
The department has kept Rs 12.02 crore as the reserve price of the auction and has informed that the buyer of the flat will have to also bear expenses of Rs 28,385 as party of society maintenance bills under various heads.
The taxman has also notified Hersh Chadha, in the same notice, about the auction at his three available addresses in Dubai (two) and in Mumbai and via email.Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India’s leading expert on wealth building, has created a strategy which makes it possible… in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.