Bank auctions tank bed, BCC says it will fight back

Bank auctions tank bed, BCC says it will fight back
New Indian Express

BANGALORE: The Indian Overseas Bank (IOB) auctioned off the Byrasandra Tank bed, which is public property according to a 1998 High Court ruling, on Friday. The Bangalore City Corporation (BCC), however, has warned that it will contest the sale deal, maintaining that the tank bed was public property.

A certain Siera Property Developers Private Limited had mortgaged the land to the IOB in 1994 for a loan of Rs. 6 crore, by pledging the ‘‘ownership records’’. The firm defaulted and IOB on Friday recovered the loan in the auction. Mustaq Ahmed, for Rs. 7.70 crore, bought it. BCC officials cited the 1985 Lakshman Rau Committee report to drive home their point that it was public property.

BCC had some time back handed over the land to the Forest Department to green the area, but is now in the process of taking it back.

BCC Commissioner K. Jothiramalingam said: ‘‘I am aware of the auction, I will look into it. The tank bed was in the process of being taken away from the Forest Department. Since the property is sold now, the purchaser will face court proceedings.’’

Range Forest Officer Govindaraju maintained that he had no idea about the land being auctioned off. Conservator of Forests, U.V. Singh said: ‘‘We cannot take action because the land is not covered under the Forest Act. The BCC has taken over the development of the tank and I have to verify our past agreements with the BCC.’’

The bank officials said: ‘‘We are satisfied with the settlement. We are not worried if the land belongs to the BCC or not. Their application for a stay order has been rejected by the High Court.’’

The Debt Recovery Tribunal, which conducted the auction said the BCC could have filed its objections two years ago when the property was attached, but has not done so.

Opposition leader in the BCC council, B.M. Manjula is firm that the BCC owns the land, and it has also spent Rs. 98 lakh on the tank’s revival last year.