Court sets reserve price for Aamby Valley City assets auction, Subrata Roy submits cheques, contempt ruling issued

The Court directed the fixing of a reserve fair price for auction at Rs. 37,392 Crores for immovable assets in Aamby Valley City. Subrata Roy Sahara submitted post-dated cheques towards owed instalments. The Court found a power of attorney holder guilty of contempt for failing to deposit a specified sum, sentencing him to one-month imprisonment. The judgment highlighted asset valuation, payment compliance, auction procedures, contempt proceedings, and sentencing, showcasing the Court's commitment to upholding the rule of law and ensuring financial accountability.

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Issues:
1. Valuation of immovable assets in Aamby Valley City.
2. Submission of post-dated cheques by the contemnor.
3. Fixing reserve price for auction.
4. Contempt of court by power of attorney holder.
5. Sentencing the power of attorney holder.

Valuation of Immovable Assets in Aamby Valley City:
The Official Liquidator presented a detailed report on the valuation of assets, including land and buildings within Aamby Valley City. The report outlined the Fair Market Value, Realizable Value, and Distress Value of the assets. The valuation process considered factors such as Ready Recknor Rate and discounting for the current real estate market scenario post-Demonetisation. The total value of immovable assets, including land and buildings, was calculated and presented in the report.

Submission of Post-Dated Cheques by the Contemnor:
The contemnor, Subrata Roy Sahara, submitted post-dated cheques towards the payment of instalments owed. The cheques, totaling a significant amount, were presented to SEBI Refund Account. The contemnor provided an undertaking to ensure the honouring and encashment of the cheques on the due dates. The submission of these cheques was a crucial aspect of the ongoing proceedings to address the outstanding dues.

Fixing Reserve Price for Auction:
In light of the valuation report and submissions made, the Court directed the fixing of a reserve fair price for auction at Rs. 37,392 Crores. The Official Liquidator was instructed to proceed with auction formalities, including preparing draft terms and conditions, sale notice, and seeking approval from the Court. The terms and conditions for the auction were to be finalized in consultation with a former Judge of the Court, ensuring compliance with procedural rules.

Contempt of Court by Power of Attorney Holder:
The Court addressed the violation of an order by a power of attorney holder, who failed to deposit a specified sum. After hearing the explanations, the Court found the individual guilty of contempt and convicted him accordingly. Despite the individual's assertions of personal circumstances, the Court imposed a one-month simple imprisonment term. The individual was to be produced before the Registrar for issuing a warrant to serve the sentence at Tihar Jail.

This judgment encompassed various critical issues, including asset valuation, compliance with payment obligations, auction procedures, contempt proceedings, and sentencing for non-compliance. The Court's meticulous approach in handling these complex legal matters demonstrated a commitment to upholding the rule of law and ensuring accountability in financial transactions and court directives.

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