The Supreme Court on Tuesday strongly questioned the manner in which a property valuation was conducted in proceedings arising out of an alleged scam under the Maharashtra Protection of Interest of Depositors (MPID) Act, orally observing that a residential property worth nearly ₹100 crore appeared to have been systematically undervalued and auctioned for a fraction of its value.

A Bench of Chief Justice Surya Kant and Justice Joymalya Bagchi was hearing a plea for challenging adverse observations made against him by the Bombay High Court.

During the hearing, the petitioner argued that he was merely acting on instructions of the competent authority, and had no role in the auction process or publication of notices.

The Court, however, expressed serious concern over the valuation exercise, particularly the treatment of a residential plot as agricultural land merely because the building licence had expired. The Bench remarked:

“A property of ₹100 crore, you are selling through dubious procedure to a person for ₹10 crore…You are a valuer, as you say, of experience and reputation… You are being given a sale deed in respect of a residential plot. You mark it as agricultural. Why?”

The Court also orally noted that the record prima facie suggested “meeting of minds” and collusion in the valuation and auction process. Referring to observations of the Bombay High Court, the Bench said there appeared to be “a big fraud” and even remarked that an FIR ought to have been directed in the matter.

The valuer ultimately sought permission to withdraw the SLP with liberty to approach the High Court by way of review, contending that adverse remarks had been passed without notice or hearing. Allowing withdrawal, the Bench observed:

“We are only permitting you to withdraw the SLP because you want to go to High Court.”