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Cover Story 14-16.Qxp 8/9/2007 12:29 AM Page 2 cover story 14-16.qxp 8/9/2007 12:29 AM Page 2 14 COVERSTORY TEHELKA The People’s Paper | Saturday, 18 August 2007 OFFICE FOR PROFIT A STINK YOU SHOULD SMELL FORMER SUPREME COURT CHIEF JUSTICE YK SABHARWAL WAS INVOLVED IN DUBIOUS JUDICIAL DEAL-MAKING THAT EARNED HIS SONS HUGE PROFITS. SOSAYSAGROUPOFENGAGEDANDCREDIBLE CITIZENS LED BY FORMER LAW MINISTER SHANTI BHUSHAN. AND THEY HAVE EVIDENCE TO BACK THEIR CLAIMS. SANJAY DUBEY PIECES TOGETHER THEIR CASE HE ISSUE of sealing was that Sabharwal’s sons, Chetan Sabharwal 50 percent shareholder. On the same day, difficult as on the one and Nitin Sabharwal, clearly stood to bene- Pawan Impex’s registered office was shifted hand it was a question fit from their father’s orders. His orders, OCTOBER 2004 back to its old address in Punjabi Bagh. Soon of law and on the other thus, are against the principles of natural THE PROMOTER OF ONE thereafter, Chawla’s wife, Anjali Chawla, of the suffering among justice which say that no judge can hear a was also made a director in the company. the people.” This is case in which he has a personal interest. OF THE BIGGEST how Justice YK According to Shanti Bhushan, instead of re- SHOPPING MALLS IN ABHARWAL’S SONS nurtured am- Sabharwal, the former Chief Justice of India cusing himself because of conflict of inter- DELHI WAS INDUCTED IN bitious real-estate dreams. And T(CJI), described the demolition drive that had est, Sabharwal remained the presiding offi- they began laying its founda- brought the nation’s capital to a virtual cer of the sealing case from 2004 till he re- HIS SONS’ FIRM AS A 50 tions when they set up a con- standstill for weeks. In an interaction with tired in January 2007. PERCENT PARTNER struction company, called the media on the eve of his retirement in It all flared up on February 16, 2006, the SHarpawan Constructors, on April 8, 2005. January, Sabharwal singled out the Supreme day then Chief Justice of India, YK JULY 2005 An important decision taken by their fa- Court’s action against Delhi’s shopkeepers Sabharwal, passed the order which set in ther a few days earlier was going to change as the most difficult decision he had taken motion the process of sealing of properties THREE PLOTS ALLOTTED both Delhi’s and their fortunes. as the Chief Justice. He elaborated on why it being used for commercial purposes in des- TO HIS SONS’ FIRM IN On March 17, 2005, Justice Sabharwal, had become such a huge dilemma for him. ignated residential areas in Delhi. The seal- NOIDA BY THE MULAYAM who at the time was dealing with the case “I earned the wrath of my relatives. ing and demolition drive to implement the of polluting industries operating in resi- Yesterday one of my relatives [affected by court order forced thousands of small and GOVERNMENT AT dential areas, ordered that he would now the sealing order] told me sarcastically that medium-sized commercial establishments THROWAWAY RATES. also deal with the case of commercial es- I am a big man. I told him I couldn’t solve in- to either shut shop or buy or rent premises tablishments operating from residential dividual problems.” in malls and commercial complexes. THE CONTROVERSIAL areas. Another bench of the Supreme The anguish with which the former chief There were reports of suicides and heart AMAR SINGH TAPES Court had admitted this case in 2003. justice of India described the sealing drive attacks as the government tried to cope with WERE STAYED LATER BY In October 2005, another bigwig in the as the most difficult decision of his career, a precarious law and order situation in the Delhi mall business, Purushottam however, flies in the face of facts unearthed capital; it had little choice but to implement JUSTICE SABHARWAL Bhageria of Fargo estates, joined hands by a committee of equally eminent citizens the Supreme Court’s (SC) orders. Everything with Chetan and Nitin. He was appointed called the Campaign for Judicial Accoun- was being done in the name of upholding FEBRUARY 2006 a director in Harpawan Constructors, as tability and Judicial Reforms. The Commi- the law — or so it seemed. It now transpires SABHARWAL PASSED A was his brother Madhusudan Bhageria. ttee’s patrons include such veteran torch- that even as Delhi was bleeding, Justice Soon after this, Bhageria announced his Sabharwal’s elder son Chetan and younger STRINGENT ORDER TO plans to develop Square 1 Mall in Saket in A SHORT WHILE son Nitin, were breaking the law. SEAL COMMERCIAL New Delhi. It was touted as one of the Documents presented by the Commit- ESTABLISHMENTS IN largest and most luxurious malls planned BEFORE THE SEALING tee reveal that at least two companies in Delhi. COLONIES. BY THEN, HIS DRIVE BEGAN, owned by Chetan and Nitin — Pawan In November 2005, Justice Sabharwal be- Impex (PI) and Harpawan Constructors SONS HAD TIED UP WITH came the CJI and by February 16, 2006 when SABHARWAL’S SONS (HC) — were operating from their father’s TWO BIG COMMERCIAL he passed the “most difficult” order of his private residence, 3/81, Punjabi Bagh, life to seal the commercial establishments SHIFTED THEIR when the sealing drive was in full swing. DEVELOPERS operating from residential areas, his sons OFFICE TO HIS Even more surprising is the fact that for were on track to enter the mall and the greater part of 2004, Pawan Impex was MARCH 2007 commercial complexes OFFICIAL BUNGALOW operating out of 6, Motilal Nehru Place, the official residence of Justice Sabharwal, who SABHARWAL’S SONS bearers of public integrity as former law was then one of the senior-most SC judges. BOUGHT A HOUSE IN minister Shanti Bhushan, Justice VR According to documents filed by Pawan MAHARANI BAGH FOR Krishna Iyer, Admiral RH Tahiliani and the Impex with the Department of Company Supreme Court lawyer Prashant Bhushan. Affairs, its registered office was shifted from RS 15.43 CRORE Documents gathered from many govern- 3/81, Punjabi Bagh to 6, Motilal Nehru Place ment departments by the committee cast a in January 2004. For the next 10 months, the shadow of taint over the actions of Justice house of a senior SC judge — Sabharwal — Sabharwal who, Shanti Bhushan says, “was was also the firm’s registered office. BODY OF EMINENCE a very competent judge”. (See interview) Documents from the Department of Some members of the Campaign for Judicial Accountability and Reforms Contrary to what Sabharwal said, the Company Affairs also reveal that on JUSTICE VR KRISHNA IYERJUSTICE PB SAWANTJUSTICE H. SURESH Committee’s findings show that far from October 23, 2004, the promoter of one of SHANTI BHUSHANK. KANNABIRANAJIT BHATTACHARJEA earning the wrath of his relatives, “the for- the biggest shopping malls and commercial PRABHASH JOSHIPROF BB PANDEADMIRAL RH TAHILIANI mer chief justice has earned the gratitude of complexes in Delhi, Kabul Chawla of ARUNDHATI ROYBANWARILAL SHARMAKAMINI JAISWAL his family,” as Shanti Bhushan puts it. The Business Park Town Planners (BPTP) INDU PRAKASH SINGHPRASHANT BHUSHAN documents — perused by TEHELKA — show Limited, was inducted in Pawan Impex as a cover story 14-16.qxp 8/9/2007 12:30 AM Page 4 16 COVERSTORY TEHELKA The People’s Paper | Saturday, 18 August 2007 business in a big way, having sewn up part- tapes, which were said to have phone con- nerships with two of the biggest commer- versations that showed Singh in poor light. his family was going to benefit. Won’t such conduct shock cial real estate developers in Delhi. “Thus, from owning smalltime export- the people? The Sabharwals’ commercial complex import firms till 2004, the Sabharwals in just Sabharwal referred to the sealing drive as his most development business took off thereafter. two years time got into the business of de- difficult case because on one hand was the law, On June 21, 2006, Pawan Impex’s share- veloping commercial complexes and appear and on the other the suffering of the people. capital increased from Rs 1 lakh to Rs 3 to be rolling in money,” the report by the And he opted for the law and not the sufferings of the peo- crore. Then, on September 30, 2006, the Committee concludes. All this happened ple. If the carrying on of commercial activity from resi- Chawlas of BPTP developers invested Rs 1.5 when Justice Sabharwal was a senior judge dential areas was contrary to the law then the Supreme crore in the company. On August 22, 2006, and then the Chief Justice, dealing with the Court should have directed the government to alter the Pawan Impex was given a Rs 28-crore loan sealing cases and passing orders which law, which it did. Why go on with the drive even after that? by the Union Bank of India. The loan was stood to benefit his sons and their partners. Therefore it was not a painful decision. secured by mortgaging the “plant, machin- The continuing good fortune of the Sabharwal also said he had to live with the wrath ery and other assets” lying in plots A-3, 4 Sabharwals can be gauged by their recent of his friends and relatives. and 5 in Sector 125, Noida. But, in fact, purchase of a property worth several crores. Yes, yes, but he earned the gratitude of his family. He had there is no plant or machinery here. Instead, TEHELKA has a sale deed of a house in south a choice, either to earn the immense gratitude of his fam- a huge IT park — Park Centra — worth hun- Delhi’s upscale Maharani Bagh which ily and make them big tycoons with properties worth dreds of crores is being built by BPTP Ltd.
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