Details about MET

Land Acquisition/Development for Construction of Santosh Medical and Dental College at Pratap Vihar, Ghaziabad (Scheme No.12941) Liquidation of loan liability of HUDCO by MET.

M/s. Housing & Urban Development Corporation Ltd. (HUDCO), a Govt. of India Enterprise, duly incorporated under the Companies Act, 1956, having its Regd. Office at HUDCO Bhawan, India Habitat Centre, Lodhi Road, New Delhi - 110003 had sanctioned a term loan of Rs.75.07 crores to M/s. Maharaji Educational Trust (MET) for land acquisition and construction of Santosh Medical & Dental College, Pratap Vihar, Ghaziabad, having its principal office at 7, Avenue Basant Road, Chennai and its Branch Office at 1, Santosh Nagar, Pratap Vihar, Ghaziabad - 201009 (U.P.) through its Chairman & Managing Trustee Shri P.

Mahalingam and other Trustee vide Sanction Letter No.HUDCO/UIFW/UP/MET/2855 dated 1912-1995 against the security of mortgage of project properties and personal guarantees of Dr. P Mahalingam and Smt. P Kuyilambal . The entire land and building of the College and other land has been mortgaged with HUDCO as per details given below. (i) Multi storey Building/Hospital Complex bearing Plot No.1-2, Ambedkar Road, Opposite Bus Depot, Ghaziabad (UP) admeasuring 6009.36 sq.mts. together with super structure constructed thereon in terms of Sale Deed dated 14.10.1996.

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(ii)

Land admeasuring 20234.25 sq. mts. (5 acres) at Block No. K, Pratap Vihar, Sector12, Ghaziabad (U.P.) together with super structure constructed thereon in terms of Lease Deed dated 15.09.1995 and Conveyance Deed dated 03.02.1996.

(iii)

Land admeasuring 20234.25 sq.mts. (5 acres) at Block No. J, Pratap Vihar, Sector12, Ghaziabad (U.P.) together with super structure constructed thereon in terms of Lease Deed dated 15.09.1995 and Conveyance Deed dated 03.02.1996.

(iv)

Land admeasuring 5.766 acres at Pratap Vihar, Sector-12, Ghaziabad (U.P.) together with super structure constructed thereon in terms of Sale Deed dated 11.04.1997.

(v)

Land admeasuring 1784.27 sq.mts. at 16, HIG Houses, bearing No. H1-HIG at HBlock, Pratap Vihar, Sector-12, Ghaziabad (UP) together with super structure constructed thereon in terms of Lease Deed dated 15.09.1995 and conveyance deed dated 03.02.1996.

(vi)

Land admeasuring 108 Bighas-01 Biswas 14, Biswancies-13 Kachwancies comprising of Khasra Nos. 125/2, 126/2, 128/2, 129/5, 127 MIN, 127, 127 MIN, 166, 166/2, 116, 142/2, 116/2 , 88, 142/2, 104, 105, 121/2, 141/6, 117 MIN, 123 MIN, 112, 126/1,

126/3, 128/1, 136/2, 135/2, 128/1, 135/2, 115, 125/ 1, 136/3, 110, 121/4, 141/5, 129/2,

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129/4, 129 MIN, 134, 138/1, 108/1 , 125/1, 133 MIN, 109, 136/1, 121/1, 138/2, 114, 141/1, 141/6, 134 MIN, 129/6, 120 MIN, 120, 107, 133, 135/1,137, 141/2, 144,135/3, 150 MIN, 150, 152, 153, 126/3, 129/3, 121/5, 129/1, 151, 125/2, 128/2, 126/2, 129/5, 132/2, 130, 131, 140, 141/8, 132/2, 113, 180, 185, 187/2, 176/1, 180, 182/1, 132/2, 130, 131, 182/1, 23, 23/1, 29, 34, 8, 3, 21, 19, 7/1, 19, 40, 30, 32, 5/1, 38, 43/5, 40, 6/2/3, 7/1 & 7/2, 31/2, 31/1, 1, 2, 44, 6/2/3, 7/1 & 7/2, 10, 12, 33, 31/3, 36, 43/1, 15/1, 31/3, 14, 15/1, 4, 6/1, 9 & 11, 5/2, 5/3, 33, 1, 2 & 44, 10, 7/2, 6/2/1 & 7/1, 4, 6/1, 9 & 11, 10 situated in the revenue limits of village Akbarpur, Behrampur and Mirzapur, Pargana Loni, Distt. Ghaziabad, U.P.

(vii) All movable machinery, equipments, furnitures, fittings, book debts, monies, receivables etc. of the Maharaji Educational Trust lying at Hospital/Medical college at Plot No.1-2, Ambedkar Road, opposite Bus Depot, Ghaziabad (UP) Block No.H, J & K of Pratap Vihar, Sector-12, Ghaziabad (UP) or at any other place other personal properties/assets of the Kuyilambal.. The entire sanctioned loan of Rs.75.07 crores was disbursed to the MET in different instalments between 20.12.1995 to 07.09.1998. Since the MET had committed the default and failed to clear the dues of HUDCO inspite of various requests/reminders, finally HUDCO had filed the recovery suit No.OA No.160/02 against MET and others before the Debt Recovery Tribunal, Delhi (DRT) on 20.08.2002 for recovery of its dues amounting to Rs.1,48,08,06,453/- together Maharaji Educational Trust, Dr. P Mahalingam and Smt.

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with pendentelite and future interest @18.48% p.a. and penal interest & additional interest @ 2.5% p.a. with quarterly rest. DRT vide its order dated 26.08.2002 restrained MET, its Trustee above name, their agents, nominees, attorneys, representatives, successors etc. from selling, alienating, disposing of, transferring or partly with the possession in any manner or creating of third party interest in respect of above immovable properties. The aforesaid OA has been decided in favour of HUDCO by DRT-II, Delhi on 03.06.2008 and a decree of Rs.148,08,06,453/- together with pendentelite and future interest @ 9% p.a. with quarterly rest from the date of filing of above OA i.e. 20.8.2002 till the date of full realization with cost and other usual relief against MET and its above Trustee has been awarded in favour of HUDCO. Public Notices both in English & Hindi have already been given by HUDCO in the various newspapers i.e. Indian Express, Financial Express and Jansatta on 12.09.2008 whereby it was brought to the notice of public at large about the factum of loan sanctioned and disbursed by HUDCO to MET, properties mortgaged by the Trust with HUDCO and orders of Ld. DRT

allowing the OA of HUDCO. MET had filed appeal No.124/08 in Debt Recovery Appellate Tribunal, Delhi (DRAT) challenging/setting aside the final order of DRT dated 03.06.2008 and HUDCO had also filed cross appeal No.120/08 before the DRAT for increasing of the pendentelite and future interest as per contractual rate. The appeal filed by MET against the said order of DRT was dismissed and appeal filed by HUDCO for enhancing the rate of interest was allowed by DRAT, Delhi vide its order dated 06.10.2010 and MET was directed to pay an amount of Rs.148,09,56,453/- with pendentelite

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and future interest @ 16.50% simple w.e.f. 20.8.2002 alongwith cost of suit amounting to Rs.1,50,000/- till realization from the Certificate Debtors i.e. MET and its Trustee to HUDCO. It has come to the knowledge of HUDCO that public notices have been published in The Times of India/Hindustan Times newspapers on 31.03.2011, 20.06.2011 and 23.06.2011 by Shri Satish Dayanandan, Advocate, in respect of alleged Agreement to Sell dated 26.08.2010 for land admeasuring 63.45 acres comprising of khasra No./kila nos. 44M,45,46,47,48,49 (measuring 1.408 hectares) at village Shahbad, Tehsil & Distt. Ghaziabad (U.P.), khasra nos. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18M, 19P, 20M, 21P, 22, 23, 24, 28M, 29P, 30P, 31P, 32P, 30P and 45M (measuring 11.322 hectares) at village Akbarpur/Behrampur, Tehsil & Distt. Ghaziabad and khasra nos. 113P, 114P, 115P, 116P, 117P, 118P, 119, 120, 121P, 121M, 123, 124, 125, 126, 127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 14P, 164M, 165M, 166P (measuring 12.648 hectares) at village Mirzapur, Tehsil & Distt. Ghaziabad (U.P.) for alleged consideration of Rs.154.00 crores executed by Dr. P. Mahalingam, Chairman & Managing Trustee of the Trust in favour of M/s. SGS Construction & Developers Pvt. Ltd. The land which is subject matter of the said agreement is part and parcel of the Khasras (fully and/or partly) mortgaged/charged with HUDCO and matter is subjudice before the Honble DRT-II, Delhi. The DRT vide order dated 26.08.2002 has restrained the MET from transferring, alienating and imparting in possession in any other manner or creating third party interest etc. in respect of the said mortgaged properties with HUDCO. But, inspite of public notice given by HUDCO on 12.09.2008 and status quo granted by the DRT vide order dated 26.08.2002, MET in connivance and collusion with M/s. SGS Construction & Developers Pvt. Ltd. has entered into alleged Agreement to Sell dated 26.08.2010 and has also started some arbitration proceedings before Mr. Justice B.A. Khan (Retd. Arbitrator), High Court of Delhi. The MET and M/s. SGS Construction & Developers Pvt. Ltd. in violation to the stay

order granted by DRT with respect to property mortgaged with HUDCO and in order to defeat

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the end of Justice, obstructing HUDCOs legal rights to sell the mortgaged land admeasuring 108 Bighas -01 Biswas14, Biswancis, 13-Khachwancies situated at village Akbarpur, Behrampur & Mirzapur for realization of decreed amount with dishonest intention for unlawful gain by signed alleged Agreement to Sell thereby committed gross Contempt of Court and other offences punishable under the Indian Penal Code. Pursuant to the order passed by DRAT, Delhi, a revised Recovery Certificate No.39/11 for a sum of Rs.148,09,56,453/- (Rupees one hundred forty eight crore nine lacs fifty six thousand and four hundred fifty three only) together with pendentelite & future interest @ 16.50% p.a. simple w.e.f. 20.08.2002 alongwith the cost of Rs. 1,50,000/- till realization was issued by the DRT-II Delhi in favour of HUDCO and in pursuance to that Demand Notice u/s 25 to 28 of Recovery of Debts and Dues to the Banks and Financial Institutions Act, 1993 and Rule 2 of the Second Schedule to the Income Tax, 1961, was issued by Honble DRT on 02.05.2011 to the CDs No. 1, 2 & 3 i.e. MET, Dr. P Mahalingam, Chairman & Managing Trustee, MET and Smt. Kuyilambal, Trustee, Maharaji Educational Trust, with a direction for paying the decreed

amount within 15 days from the receipt of the said Notice, failing which recovery would be made in accordance with the RDDBFI Act, 1993. The aforesaid execution recovery proceedings to recover decretal amount in terms of demand notice dated 02.05.2011 are in the process before the Recovery Officer, DRT-II and the decreetal amount would be realized from the sale proceeds of the mortgaged assets etc. available with HUDCO.

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Recently, it has come to our notice that M/s Maharaji Educational Trust willfully, deliberately and fraudulently in contravention of mortgage and loan documents and in disobedience to the restrained order passed by DRT as stated above, has exchanged, fully and/or partly, vide Exchange Deed dated 04.05.2007, land admeasuring 8.242 hectare comprising of Khasra Nos. 19P, 21P, 29P, 30P, 31P, 32P, 33P, 34, 36, 38/1, 40P, 43P, 44, 88P, 104, 105, 107, 108, 109, 110 situated at Village Akbarpur and Mirzapur, Pargana Loni, Tehsil Ghaziabad, with M/s. UP Awas Vikas Parishad, which are mortgaged with HUDCO.

The trust fraudulently and/or in connivance and collusion with the Parishad, has exchanged the aforesaid land inspite of the status quo granted by the DRT, and the matter is subjudice before the Tribunal. The above exchange of land by MET with M/s. UP Awas Vikas Parishad is null and void in the eye of law for which HUDCO would take all recourse/ actions/steps against the M/s. UP Awas Vikas Parishad and MET in accordance with law. In this connection, HUDCO vide letter No. HUDCO/MET//RO(NCR)/12941/2011/558 dated 05.08.2011 has already put on notice to M/s. UP Awas Vikas Parishad that the above exchange of land by M/s. Maharaji Educational Trust with M/s. UP Awas Vikas Parishad, which was in violation of mortgage and loan documents in favour of HUDCO and the orders issued by the DRT, DRAT and High Court of Delhi, is void & illegal and do not confer any right, title or interest/claim whatsoever on the

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property mortgaged/charged with HUDCO, and HUDCO has absolute right to recover its decretal amount of Rs. 148,09,56,453/- in terms of recovery certificate from the sale proceeds of all the properties including the properties alleged to be exchanged by MET with Parishad as the same are mortgaged/charged with HUDCO.

A criminal complaint u/s 138 of N.I. Act was filed by HUDCO against the accused MET, Dr. P Mahalingam and Smt. P Kuilambal in the District Court, New Delhi and the accused are facing the trial in the court of Metropolitian Magistrate, Patiala House Court, New Delhi. Another criminal complaint u/s 420, 466 & 468 of Indian Penal Code was filed by HUDCO against the MET, Dr. P Mahalingam & Ors. and the Trial Court has taken the cognizance of the complaint and same is pending before the Metropolitan Magistrate, Patiala House Court, New Delhi for further proceedings. Further, the Statutory notice u/s 13(2) of the Securitization and Reconstruction of the Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, dated 19.02.2011 has been issued by Authorized Officer, HUDCO to the Managing Trustee of the MET whereby the Trust has been called upon to pay/deposit a sum of Rs. 349,51,09,993/- crores alongwith legal, SARFAESI and other misc. expenses to the secured creditor HUDCO in terms of the said notice.

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In addition to the above, HUDCO has also initiated the criminal and contempt proceedings against the Chairman & Managing Trustee of the Trust & Ors. and M/s. SGS Construction & Developers Pvt. Ltd. & Ors. in the Court/Tribunal of competent jurisdiction.

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