CHENNAI : The Madras High Court has upheld the auction-sale of personal properties belonging to the directors of the Alwarpet Benefit Fund (ABF).

A Division Bench comprising Justice P. Sathasivam and Justice S. Manikumar, concurring with a single judge decision, said there was evidence to show that K.Sp.V. Shanmugam, S. Hashavardhan, S. Unnamalai and S. Vishnuvardhan had diverted funds from the ABF to acquire various properties.

"We are satisfied that the properties in dispute were sold only as per the orders of this court, and in a manner known to law. We are also satisfied that the auction-sale conducted by this court is in accordance with law and the Commissioner, who is none else than a retired judge of this court, has specifically stated that highest and best price has been obtained for the properties," the judges said.

Criticising the appellants for non-compliance with bail conditions and for challenging the auction-sale of the properties at this stage, the Bench said: "The appellants herein have set an example by escaping arrest to avoid subjecting themselves to legal liability. To come out on bail, they went to the extent of filing an undertaking affidavit to deposit Rs. 4 crore and even sought the permission of the court to touch the personal properties. As soon as they came out, they again started their foul play and were successful in being away from the clutches of law. Acceding to the request of people of this nature, undoubtedly, would set a bad trend."

Appreciating the works done by the court-appointed commissioner, the judges asked him to find ways and means to mobilise more funds by taking all possible stringent steps within his domain to make good the loss of the depositors and settle their claims expeditiously.

They also lamented that by advertising pompous offers in honey-coated words, many financial establishments had "competed with one another in devouring the investments of the depositors, who lost their precious savings to these white-collar offenders."

Maintaining that courts could not turn a blind eye and remain a silent spectator to this "innovative type of plunder," the judges concluded that the appellants' challenge to the auction-sale of their personal properties could not be sustained.

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