Telgi

Bangalore, Feb. 16: A sole bidder today picked up a posh apartment owned by Abdul Karim Telgi at the income-tax department?s auction of three properties to recover the stamp scam kingpin?s unpaid taxes.

The ground-floor apartment on Palace Road, Bangalore?s business district, was acquired for Rs 1.43 crore by Mac Charles India Ltd, a company that operates the Le Meridien chain of hotels. Its quotation matched the reserve price the income-tax officials had set.

The other properties ? a commercial complex of reserve price Rs 2.71 crore and a 3,170-sq ft plot of reserve price Rs 2.42 crore ? would be put on auction again later.

On Tuesday, Karnataka High Court had refused to stay the auction after Telgi?s counsel Nanaiah objected to it.

The counsel argued that the I-T department had not secured Telgi?s consent to the Palace Road apartment?s auction. Nanaiah said his client had only agreed to the sale of the two other properties.

?There were some enquiries but no bidders came forward till 4 pm. The next date (for auction) will be announced in consultation with higher authorities,? tax recovery officer S. Palani said.

Today?s auction commenced at 10.30 am, when a handful of prospective buyers made enquiries and left the income-tax office.

On sole bidder Mac Charles? request for time to inspect the apartment, Palani and his colleagues delayed the auction. The company deposited 25 per cent of the bid amount in the afternoon along with 10 per cent of the refundable caution amount.

Telgi, officials said, filed his last income-tax returns on December 29, 2003, disclosing a net income of Rs 45.54 lakh. The I-T officials assessed his income for 1996-2003 at Rs 4.90 crore, and interest and penalty at Rs 6.59 crore.

Telgi, in judicial custody since Bangalore city police arrested him in Ajmer in November 2001, agreed to the I-T department?s auction of an apartment in Mumbai and the confiscation of a bank account in Bangalore to recover his tax arrears.