Rs 2 crore for a house worth crores: What makes the auction of Anto Augustine’s house dubious?

Kozhikode: A dubious transaction has emerged over the recovery of a house seized in connection with Reporter Broadcasting Company chief Anto Augustine, who is currently in judicial custody in a case involving the alleged storage of excess liquor at the property.

The house, along with 36.25 cents of land, had been mortgaged to a public sector bank against a loan of Rs 13.57 crore. After the loan fell into arrears, the bank put the property up for auction.

Anto’s mother-in-law, Lilly, reportedly was the only person to participate in the online auction. It is said that she subsequently acquired the property for Rs 2 crore, despite the property being valued at several crores. It is learnt that the bank authorities have not yet agreed to complete the registration process for the house. As a result, the building tax continues to be paid in Anto’s name and the property remains in his possession.

The house, which was attached four years ago, was the same property from where liquor allegedly exceeding the permitted quantity was seized recently.

Anto had argued before the Kerala High Court and other forums that the house was not in his name and that his arrest was therefore illegal.

He had produced a sale certificate issued by the bank before the court, allegedly without disclosing that his mother-in-law had purchased the property at the auction.

The magistrate court rejected his bail plea after considering, among other things, that Anto continued to pay the building tax on the property.

Rs 13.57 crore loan for vehicle showroom

The loan from the public sector bank was reportedly taken in 2013 in connection with the operation of a vehicle showroom started by Anto under the name ‘Asian Motors’.

The bank was reportedly informed that the company planned to import trucks from China and operate a dealership.

Of the loan amount, Rs 11.57 crore was apparently taken as cash credit to purchase vehicles and related parts for sale. A further Rs 2 crore term loan was reportedly taken to purchase 10 vehicles.

A subsequent inspection by bank officials is said to have found that no vehicles had been purchased for display at the showroom.

Following the alleged violation of the loan conditions, the bank reportedly initiated steps to recover the amount. Apparently, it also approached the Debt Recovery Tribunal seeking recovery of the outstanding dues.

As part of the subsequent proceedings, the house and land were put up for auction on June 30, 2022.

The house is situated on around 11.25 cents of the total 36.25 cents of land, according to the report.

Lilly, Anto’s mother-in-law, was reportedly the only person who took part in the online auction.

Same property allegedly mortgaged to two banks

There is also an allegation that Anto mortgaged the same house with another public sector bank to obtain a loan while the 2013 loan was still outstanding.

The allegation was mentioned in a submission made by bank officials before the Kerala High Court in connection with the loan recovery case, according to reports.