PENTHOUSE BUILDERS PVT LTD owner of Penthouse Beach Resort has filed a
suit against the EDC for fradulently auctioning its property to Shri R G
Bhakale, nephew of its then Chairman, Shri Ramkrishna alias Sudin
Dhavlikar ex-MLA from Madkai. The company alleges that the auction sale of
the property is a benami transaction for an on behalf of EDC Chairman
Sudin Dhavlikar.

The Company had taken a loan of Rs 61.2 lakhs from the EDC in 1986 and had
repaid with interest a sum of Rs 100 lakhs but was unable to meet the
total repayment schedule. The EDC thereupon announced an auction of the
Company's property having a net worth of over Rs 500 lakhs. The Company
has alleged that no bidders had come forward to bid at the auction as the
advertisement was fradulently designed and was in violation of the norms
for publication of such an auction.

The Company has alleged that the advertisement was faulty in that it was
vague, did not disclose essential facts, left an inadequate period between
the date of advertisement and the date of auction, and did not mention an
upset price. The EDC failed to give notice to the Company of the value
fixed and did not divulge the name of the auction purchaser to the
Company.

There was a total lack of transparency on the auction process which was
carried out despite inadequate response or the sole purpose of favouring
the nephew of the Chairman of the EDC to acquire a deliberately
undervalued property at a pittance.

Furthermore, according to the Company, it had deposited an amount of over
Rs 25 lakhs and paid fees of Rs 20,000 as application charges for a
one-time settmenet of the Comapany debt, offered by the EDC by public
advertisements.

According to the Company it had deposited an amount of Rs 105 lakhs in the
High Court of Bombay at Panaji for a one-time settlement. However the
encashment of the amount was delayed by an interloper who stopped its
payment on a fictitious dispute of the amount which was actually due to
one of the Directors of the Company and which had been deposited in
Court. The money is presently in custody of the Comarca Court.

The Company says that the auction was carried out inspite of the deposit
of the above amount in Court and in spite of a suit haveing being filed by
a third party, one Aleta de Souza, wife of one of the Directors of the
Company, as co-owner of the property said to be auctioned by the EDC.

The Company alleges that property worth more than Rs 5 crores has been
illegally sold at a fraction of its true worth and in undue haste and
possession handed over without the entire amount of the bid being
deposited with the EDC. In fact, a fresh credit facility was given to the
nephew of the then Chairman of the EDC in spite of the fact that the
property was encumbered in a third party litigation.

According to the Company, the entire transaction is a colourable exercise
and intended to favour the former Chairman. It is apparent that the
transaction is a benami transaction for the benefit of Ramkrishna alias
Sudin Dhavlikar, who was the actual bidder at the auction.

The Company says that only a thorough investigation into the
auction/tendering process, including the source of funds from where
payment of Rs 54.6 lakhs was made, will clear the mist in which the
trnasction is shrouded.

Joey D'Souza, Director
Penthouse Builders

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