Ansal protests selling ban on properties

CLB had,on December 2,2010,stayed the sale of assets by the Ansal group firms,and ordered them to maintain status quo with respect to their properties as well as shareholdings.

The Ansal group firms had moved the Delhi High Court against the CLB order. However,the court did not provide them any relief and directed them to approach CLB.

It also directed CLB to hear the plea of the Ansal group firms expeditiously.

“If any such application is filed,the same will be decided and disposed of expeditiously and preferably within a period of ten days,” the High Court said.

CLB order came on a petition filed by Seagull Buildwell,which has challenged the sale of property owned by Ansal Colors Engineering SEZ — a subsidiary of Ansal Seagull SEZ — at a grossly undervalued price.

Ansal Seagull SEZ was formed for developing a SEZ at Murthal,in Sonipat,Haryana. Ansal Colors Engineering SEZ is a wholly owned subsidiary of Ansal Seagull SEZ.

Seagull Buildwell has alleged that Ansal took Rs 50 crore loan from L&T Finance to acquire additional land for the project in 2006. It had pledged assets and two crore shares of Ansal Colors Engineering SEZ as collateral.

However,Ansal group firms were unable to repay the loan,and sold the shares and assets of Ansal Colors Engineering SEZ to Ansal Properties and Infrastructure (API) and Anand Rathi Financial Services (ARES) for Rs 50 crore.

Buildwell has alleged that L&T Finance,in collusion with the Ansals,had sold all of Ansal Colors Engineering SEZ’s shares and assets to API and ARFS for just Rs 50 crore,whereas the market value of the land was above Rs 500 crore.

However,the Ansal group firms have argued that the liabilities of the company were the responsibility of both the JV partners,and L&T Finance was entitled to recover its money through liquidation of the assets and shares.