Committee - Golden Forest (India) Limited

Appointed by the Hon'ble Supreme Court of India

Present Status of Properties

  1. 1. On 5.9.2006, Hon’ble Mr. Justice Ashok Bhan and Hon’ble Mr. Justice Sirpurkar were pleased to pass the following order, in T.C.(C). 2 of 2004, Securities and Exchange Board of India vs. Golden Forests (India) Ltd, in para no. 37 ibid:-
    “ 37. The Committee is put at liberty to put to sale the properties at Village Jharmari, lands at Village Kot Billa, Jaswantgarh and other adjoining villages and a Resort at Nalagarh and other properties of GFIL, possession of which has already been taken by the Committee, by auction after due publicity. The sale shall be subject to the confirmation by this Court. After the properties are put to sale, the Committee shall report to this Court about the auction sale effected which shall be subject to the final orders of this Court.”

  2. Pursuant to the above order certain properties, details of which are contained in I.A. No. 68 of 2007 in T.C.(C) No. 2 of 2004 and I.A. no. 27 of 2007 in TC.C. No. 68 of 2003, were put to sale by auction subject to confirmation by the Hon’ble Supreme Court. The successful bidders deposited 25 % of the bid amount as per the terms and conditions of the auction and balance of the amount was to be deposited within 30 days of the confirmation of the sale by the Hon’ble Supreme Court.

  3. On 15.10.2008, Hon’ble Supreme Court directed the Committee to take over all the assets mentioned in the valuation report dated 23.6.1998 prepared by Dr. Namavati regarding the properties of Golden Forests Group of Companies. The Court also enumerated guidelines regarding auction sales by the Committee. On 29.7.2009, Hon’ble Supreme Court confirmed the auction sale of first batch of properties sold in December 2006.

  4. During the years 2006-12, the Committee had taken over possession of various properties in the States of Punjab and Haryana and Committee through open auction sold various properties under its custody and collected about Rs 476 crores as on 31.3.2012.

  5. Earlier on 3.2.2010, Hon’ble Supreme Court had transferred all the writ petitions, transferred cases, interim applications, contempt petitions etc. to Hon’ble Delhi High Court and it was requested to pass appropriate orders.

  6. Financial Commissioner, Punjab passed an order on 25.5.2012 regarding surplus lands in proceedings under Punjab Land Reforms Act, 1972, covering 4169.86 acres and rejected the Revisions filed by the companies and contested by the Committee. The Committee approached Delhi High Court against the order passed by Financial Commissioner. Punjab but it was rejected on the grounds of territorial jurisdiction. The Committee, thereafter, filed Writ Petition before Punjab and Haryana High Court. The cases are pending for about 20 years, therefore, the Committee vide I.A. No.145179 of 2019 in WP (C) No.188 of 2004 requested the Hon’ble Supreme Court to decide the matter.

  7. A similar matter relating to surplus land measuring about 1186.10 acre in State of Uttarakhand was pending before the Hon’ble Supreme Court but vide order dated 11.4.2011 S.C. remanded the matter to Revenue Board, Uttarakhand. On the application filed by the Committee, the Supreme Court ordered that the Committee be impleaded before Revenue Board, Uttarakhand. The matters are now pending before the ADM (Finance and Revenue) Dehradun. The cases are pending for more than 22 years, therefore, the Committee vide I.A. No.145178 of 2019 in WP (C) No.188 of 2004 requested the Hon’ble Supreme Court to decide the matter.

  8. Hon’ble High Court of Delhi confirmed various auction sales conducted by the Committee. The Committee had also examined the legality of the sales executed by ex-management on the basis of illegal and ante-dated resolutions and passed appropriate orders holding the transactions to be illegal. These orders were also upheld by Delhi High Court and Supreme Court.

  9. Various issues were under consideration of the Hon’ble High Court of Delhi when on 19.2.2018 the entire records of the case were called for by the Hon’ble Supreme Court. Till February, 2018 sales of 42 properties by the Committee stood confirmed.

  10. On 30.7.2018 Hon’ble Supreme Court constituted a team of three members headed by Principal Chief Commissioner of Income Tax, Delhi to submit the correct valuation of the properties of GFIL and its associate companies.

  11. As on 1.3.2022, out of total 1473828 claims, 955943 have been paid 70% of their investments. Cheques sent to 238087 investors have been received back undelivered. Cheques sent to about 233098 investors have neither presented to bank nor received back. The Committee has sent reminder to them but no reply received. Rest of approx. 46700 claims are under scrutiny.

  12. On 7.5.2019, Hon’ble Supreme Court ordered Income Tax Department to start the sale of the 23 properties mentioned in Part A of the Third Interim Report on “as is whereas basis” and the amount be remitted to the Court. Out of 23 properties the Income Tax Department has auction sold six properties for Rs 13.06 crores and as per directions of the Supreme Court dated 25.9.2019 these were transferred to the account of Chairman, GFIL.