Maharashtra government attaches Yash Birla’s Mumbai properties

Mumbai: Business tycoon and fitness freak Yash Birla, who is grappling with financial troubles might soon loose the iconic Birla House on Mount Pleasant Road and other properties in Mumbai. The state government’s home department has allegedly attached properties belonging to Birla after his company allegedly defaulted on returns to investors. Besides the palatial Birla House in south Mumbai, other properties have also been attached, including a bungalow in Juhu near the seashore.

The Maharashtra government’s home department on November 24, 2016 issued a notification to Birla, a copy of which is available with The Asian Age. The notification reads: “Whereas complaint has been received from number of depositors, against Birla Power Solution Limited, (herein after referred to as the said financial establishment) complaining that they have, collected funds and have defaulted to return the said deposit, by the depositors on demand.”

The case was that many individuals had deposited money with Birla Power Solution, where the depositors were allegedly assured returns as high as 2 per cent per month on their deposits. But soon the company allegedly started defaulting on the returns and things turned ugly when many investors approached the police. Additional chief secretary, home department, K.P. Bakshi confirmed the notification and also agreed that the properties shall be auctioned so as to repay the depositors.

However, Birla’s lawyer advocate Ramakant Gaur claimed that the notification hasn’t reached them yet and he smells ulterior motives behind the attachment. “When already property worth Rs 100 crore has been attached on March 19, further attachment wasn’t needed. This is arbitrary exercise of power, the government’s attachment is with ulterior motives and it is yet to be tested by the touchstone of forensic auditors. The Economic Offence Wing hasn’t yet appointed an auditor to identify the dues and also to identify how many dues have been settled.”