Special Court sanctions distribution of money from liquidated assets of the scamster to the I-T department, SBI, SBI Caps and Standard Chartered
The Custodian has secured another order from the Special Court, Mumbai, allowing him to release a total amount of Rs650 crore against pending claims of the Income-Tax Department, banks and financial institutions from the liquidated assets of the Harshad Mehta group of entities.
Based on a distribution proposal submitted by the Custodian, Justice DK Deshmukh of the Special Court, Mumbai, has ordered the payment of Rs28.34 crore to the Income-Tax Department, Rs259.65 crore to the State Bank of India, Rs16.25 crore to SBI Caps and Rs345.76 crore to Standard Chartered Bank, aggregating to Rs650 crore from the attached accounts of the Harshad Mehta group.
The payments are to be released on an interim basis, on undertakings to be provided by the receiving entities that the amounts will be brought back to the Custodian if so ordered by the Special Court.
In the case of Standard Chartered Bank, the court has ordered the submission of a board resolution along with an undertaking from the Bank. The Custodian has been asked to release the amount to the Standard Chartered Bank only after the final court clearance.
This is the second time that the Custodian has released money from the late Harshad Mehta's assets this year. (Read, "Custodian releases Rs2,195 crore to I-T dept, SBI from Harshad Mehta's assets".)
In ordering these releases, the Special Court has strictly followed the priorities of claims laid down under Section 11 of the Act, placing primary income-tax liabilities above the claims of banks and financial institutions.
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