Sources at the appellate authority said: "We have issued the notices to the parties concerned. There will be a hearing of the case on Monday and the fate of the property will be decided on its merits. The final decision on the purchase will be taken within a week." The last time the I-T authorities attached a property in Mumbai was in February 1998,sources said.With the realty prices going southwards and the IT property auctions finding no takers, the department is not enthused to attach properties any more as it has too many properties to maintain. The last property aution in Mumbai, held in November 1998, witnessed only one deal. After this lacklustre aution, the appellate authority decided to suspend property auctions until realty prices looked up. According to sources, the appropriate authorities of IT in charge of property have in its kitty premium property valued at over Rs 30 crore spread over Peddar Road, Napean Sea Road, Nariman Point, Cuffe Parade and some prime suburban locations like Bandra and Andheri including Harshad Mehta's flat Madhuli located at Shivsagar estate in Worli. The Section 37-I of the Income Tax Act states that all property agreements of value over Rs 75 lakh have to be filed with the appropriate authority.

If the property is thought to be undervalued, a notice of attachment is issued and the authorities hear out themerits of the case after which a decision (whether the property will be attached) is taken."Even though the IT-attached properties have clear titles, often there is no buyer for the property as the rates are higher than market prices.