The Custodian's representative in Calcutta, DJ Mukhopadhyay, had taken possession of the three flats--401, 403 and 405--in Lords on March 20, 1997, with the assistance of Calcutta Police on a March 13, 1997, order of the Special Court (Trial of offences Relating to Transactions in Securities) Act, 1992.

Subsequently, a public notice was issued in September 1997 inviting bids from the public for the flats. The first round of bidding was counterproductive.

In the second round initiated in May 1998, one bid for flat 401 was accepted. It was acquired by Anirox Pigments Pvt Ltd for Rs 70 lakh.

All the three flats had been acquired by the HarshadMehta group in October 1991. Flat 401, admeasuring 2,037 square feet, was jointly owned by Deepika Mehta (wife of Harshad's brother Ashwin) and Sudhir, another brother. It was bought with contributions of Rs 8.65 lakh each by Deepika and Sudhir Mehta.

Flat 403 (944sqft) was acquired by Harshad's wife Jyoti and Flat 405 (959sqft) belonged to Pratima Mehta (wife of Hitesh Mehta). Flats 403 and 405 were bought for Rs 8.02 lakh and Rs 8.15 lakh respectively by the Harshad Mehta group.

Flats 403 and 405 have been acquired now by GRD Constructions Pvt Ltd for a total of Rs 55 lakh. For 403, there were three bids and for 405 there were two bids. GRD had made the highest bid of Rs 47.75 lakh for the two flats against the reserve price of Rs 59.61 lakh fixed by the Income Tax department.

The price per square foot was originally set at Rs 4000, and then lowered to Rs 3,000 in the second round of bidding.

It is learnt that GRD Constructions agreed to raise its bid to Rs 55 lakh on an enquiry from the SpecialCourt. In his order dated May 3 this year, special court judge SN Variava had noted that although the bid was lower than the reserve price it was accepted because "there is a fall in the estate market".

"It is difficult to sell the flats. I find the difference in valuation and the price finally offered by GRD Constructions not being a good enough reason to refuse the offer of GRD Constructions. Accordingly, their offer is accepted," Variava had noted.

Interestingly, a Calcutta Stock Exchange stockbroker, Aditya Shroff, who had originally sold one of the three flats to the Harshad Mehta group in October 1991, was one of the bidders for Flat 403 in the last round of bidding but his bid of Rs 21 lakh was not good enough.