BANGALORE: The Income Tax Department on Friday postponed the auction of two properties of Abdul Kareem Telgi, the prime accused in the multicrore stamp paper racket, for an indefinite period as no bidders turned up. The next auction will be conducted after serving notice to Telgi, Income Tax authorities said.

This is the fourth time that no bidders turned up for the auction of the properties on Mosque Road here. The department is auctioning the properties to recover Rs. 193 crores in tax dues from Telgi. The reserve price fixed for the two properties is Rs. 2.86 crores and Rs. 2.55 crores. The department has already auctioned Telgi's property on Palace Road here for Rs 1.43 crore.

On Friday, the Income Tax Department started the proceedings at 11 a.m. They waited for nearly an hour before deciding to put off the auction for an indefinite period. Department officials found this repeated absence of bidders strange, as there have been lot of enquiries about the two properties. "We have taken many for a visit to see the two properties," but "they are not taking part in the auction," a department source said.

Appeal dismissed

Income Tax Department sources said the department rejected an appeal filed by Telgi's advocate, M.T. Nanaiah, seeking a stay on the auction. Telgi's counsel said all the documents had not been furnished to his client and, hence, the auction should not be gone ahead with. He said his client had been kept in the dark with regard to the auction proceedings. Mr. Nanaiah asked the Recovery Officer of the department not to go ahead with the auction until the appeal was disposed of.

The sources said the appeal was rejected on Monday on many grounds, including that it was filed under a wrong provision of law.

The other grounds were that the appeal did not have the signature of Telgi and the issue has already been adjudicated by the Karnataka High Court.

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