May 7: Justice R G Vaidyanatha of the Bombay High Court today passed an interim order about the seized moveable and immovable properties of those involved, directly or indirectly, in the multi-crore cobbler scam: Kishore Signapurkar of Milano Shoes, Abu Asim Azmi of Citywalk, Rafiq Tejani of Metro Shoes and Birla Global Finance Ltd.

Pointing out that it was a well- settled procedure under section 495 of the Code of Criminal Procedure for the court to pass an interim order for the sale of seized property when it is subject to natural decay or if it perishable, Justice Vaidyanatha maintained that even ``the state was ultimately interested in the value of the seized properties.''

He ordered that the entire amount which was seized in the frozen bank accounts may be kept in a fixed deposit in a nationalised bank so that it would earn an interest for the benefit of the successful party. ``The account should then be de-frozen so that the accused can operate it in future,'' the Justice Vaidyanatha ordered.

He added, ``Strictly speaking and prima facie, there is no provision in the Code of Criminal Procedure for freezing a bank account. The police may seize the money kept in the bank.''

Regarding the stock lying idle in the seized shops and godowns of the Metro Shoes owned by Rafique Tejani, Justice Vaidyanatha directed its sale by the receiver appointed by the city civil court after taking permission from the metropolitan magistrate. He directed the magistrate to hear all concerned parties including the prosecution, and pass appropriate orders about the mode and nature of sale and how the money raised from such sale should be deposited.

In the case of Citywalk, wherein the accused had offered to give a bank guarantee for the value of the goods, it was maintained that if the accused deposited an amount equal to the value of the goods with the court or gave the bank guarantee, then there was ``no legal impediment to grant him the custody'' of the goods. ``However, if he failed to give the bank guarantee or deposit the money, then the court will have to auction the goods or keep them till the disposal of the petition,'' Justice Vaidyanatha maintained. He also directed the magistrate to determine the value of the goods by getting expert opinion.

In case of Milano shoes, where the petitioners are not in a position to give a bank guarantee, the interim order directed the magistrate to sell the goods by inviting tenders or quotations from the shoe dealers in Mumbai and sell them to the highest offer. It also allowed the accused to make a bid.

Regarding the claim made by Birla Global Finance Limited on the seven vehicles seized by the police, Justice Vaidyanatha directed that they may be handed over to the petitioner on the execution of an indemnity bond with one solvent surety for keeping the vehicles in a good condition and promise not to sell or part with their possession without the prior permission of the court. Of the seven cars, five were hypothecated to the company and two were financed by it.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.