IT to Claim Rs 24,843 Cr on Aamby Valley Sale, Sahara Denied Stay

The Income Tax department has staked a claim to over Rs 24,000 crore from proceeds of the impending sale of Sahara Group’s Aamby Valley City in Pune.

(Photo Courtesy: Official Website of Aamby Valley Resort)

The Income Tax department has staked a claim to over Rs 24,000 crore from proceeds of the impending sale of Sahara Group's Aamby Valley City in Pune, because this was the tax allegedly due to the department from Aamby Valley Ltd (AVL), according to The Indian Express.

The proposed sale is to be auctioned by the official liquidators of the Bombay High Court. The official liquidator has pegged the reserve price of the property at Rs 37,392 crore. However, writes The Indian Express, the Income Tax department has claimed Rs 24,843 crores, excluding interest from the sale proceeds.

The income tax department as part of a special investigation and audit into the account books of AVL found that an income of over Rs 48,000 crore for assessment year 2012-13 was allegedly not reflected in record books. They, then, raised a fresh tax demand and penalty amount.

The Indian Express reports that according to the tax agency, the parent firm had allegedly floated a clutch of special purpose vehicles whose incomes were later accounted on the books of AVL with which they were merged.

SC Rejects Sahara’s Plea To Stay The Auction

According to IANS, the SC on Monday rejected a plea by Sahara Group urging to life attachment of Aamby Valley and to stop the auction. The Sahara Group had desired the court's permission to enter into an agreement with Royal Partners Investment Fund and sell 26 percent of its stakes for $1.6 billion.

Sahara also informed the court that it had already sold its two hotels in New York.

Declining to entertain the plea by Sahara group's two companies – Sahara India Real Estate Corporation Ltd and Sahara Housing Finance Corporation Ltd – the court in order said:

if the applicant enters into any negotiations and Royal Partners Investment Fund deposits the amount before this Court, appropriate order shall be passed on the next date of hearing.

IANS reports that the court rejected Sahara's plea even though Kapil Sibal, representing Sahara, told the court that since last hearing of the matter, the group has deposited about Rs 530 crore and sought time till November 11 to pay the balance of Rs 966 crore.

They also directed Subrata Roy to be present in the court on the next date of hearing.

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