Kolkata: Calcutta High Court on Thursday directed the Securities and Exchange Board of India (SEBI) to do a fresh valuation of the 350 acres of land seized by the state govt from the Prayag Group, a Ponzi firm now under scanner, and leased out to a steel major represented by former Indian cricket captain Sourav Ganguly for Re 1 for building a steel factory.
A division bench of Justice Joymalya Bagchi and Justice Gaurang Kanth directed the SEBI to submit a report to the bench on Feb 13. It also directed the state to extend all cooperation to the SEBI.
The bench refused to get into the agreement the state had with Shyam Steel for setting up a factory at Chandrakona in West Midnapore.
The purpose, the division bench held, was to put the property on auction. The bench would have no issues if the same company participated in the auction and turned out to be the highest bidder. The court would grant rights of property to Shyam Steel if it paid the due price in the auction process.
The order came in response to PIL questioning the state’s land allocation.
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