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High Court Orders CBI Probe Into Auction And Demolition Of House

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High Court Orders CBI Probe Into Auction And Demolition Of House

The Madras High Court has ordered CBI inquiry into the public auction and demolition of a woman's house.

Chennai:  The Madras High Court has ordered CBI inquiry into the public auction and demolition of a woman's house that was carried out even though she had not taken loan from any financial institution.

Suspecting conspiracy and collusion among various government agencies, the court has ordered CBI probe into the whole transaction involving Debts Recovery Tribunal-I (DRT-I)_ in Delhi, Indian Renewable Energy Development Agency Ltd (IREDA), and a Delhi-based private detective agency.

The petitioner S Indira sought CBI probe in 2006 after police refused to register FIR saying it was a civil dispute.

Indira had bought the house at Kasturba Nagar in Adyar in 1974, and rented it to one V S Krishnan about 30 years ago.

After seeing an auction notice pasted on the house wall, Indira sent a legal notice to the recovery officer of DRT-I in Delhi, explaining that she was the owner and the proposed auction could not go on. Despite this, the auction was held in 2003 and the property sold.

It was submitted that it was Krishnan's Maha Krishna Financial Services Ltd which had financial transaction with IREDA. Acting on the basis of an incorrect report by a Delhi-based private detective agency -- Eagle Hunter Solutions Limited -- which misreported that the tenant was owner of the building, IREDA brought the property for auction through Debts Recovery Tribunal, sold it and the new buyer razed it too.

Lambasting everyone involved in the exercise, Justice A Selvam said the main contention of Indira is that with active conspiracy of persons concerned, the property has been attached, sold in public auction and subsequently demolished.

"Simply because DRT is having statutory protection, the court cannot close its eyes in a case like this without directing CBI to conduct investigation.In fact, it is pathetic to note that the petitioner has lost her property (dwelling house) for no mistake of her."

The judge said "M/s. Eagle Hunter Solutions Limited has not annexed any document with regard to alleged ownership of Krishnan.Therefore, the report is nothing but a waste paper."

"... To put it in short, both DRT and IREDA have acted on the basis of a waste paper submitted by M/s.Eagle Hunter Solutions Limited for the reasons best known to them."

Centre argued that action against DRT was statutorily barred and said IREDA was a public financial institution and, hence, no complaint could be registered against it without the consent of central or state government.

The judge rejected the submissions and directed CBI to conduct preliminary probe on allegations levelled in Indira's complaint and proceed against people concerned if sufficient materials are available.

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