Millennium Post

‘STC loses legal battle over eviction for monetary gains’

The State Trading Corporation of India (STC), a public sector organisation, has vacated a prime property worth Rs 500 crore after ‘clandestinely’ losing a 21-year-old legal battle of eviction. This is despite Attorney General G E Vahanvati’s appearance on behalf of the Corporation. Allegations have now been made by the Corporation’s Employees Union that the in-charge of STC’s legal division, MM Sharma, lost the case allegedly for monetary gains.
A letter was written to the Central Vigilance Commission (CVC) in April by the Employees Union demanding an inquiry into the shoddy presentation of the case in the Supreme Court.

The STC was housed in the property 22, Rajpur Road since 1971. The Corporation’s tenancy was terminated by the landlord Nirmal Gupta in 1991. Since then, the Corporation has been opposing the eviction proceedings filed by Gupta. However, in 2012, Corporation agreed to vacate the premises without a fight.

The Employees Union has alleged that MM Sharma connived with the owner and deliberately agreed to evict for personal monetary gains. ‘Attorney general GE Vahanvati was engaged in the case just to avoid ‘raising of eyebrows’, the Union stated in their letter to CVC.

In fact, the Supreme Court, in its order, pointed out, ‘In fairness to Mr Vahanvati, we must say that even he didn’t make any attempt to assail the judgement and decree (order) passed by the single judge as affirmed by the division bench of the High Court.’ Vahanvati had also told the court that the Corporation is ready and willing to abide the order passed by the trial court and vacate the premises.

He also urged to the court that the ‘Corporation is willing to pay the damages/profits to the owner’, which later turned out to be Rs 30 lakhs. The Union has further alleged that this has been done to benefit the builder mafia.
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