UNION BANK OF INDIA THROUGH SANJAY KUMAR S/O KEDAR PRASAD vs THE STATE OF MAHARASHTRA AND ORS. — APEAL/633/2022

CASE SUMMARY: APEAL/633/2022 (Criminal Appeal No.337 of 2026) PETITIONER: Union Bank of India (through Sanjay Kumar) RESPONDENTS: The State of Maharashtra, Deputy Collector & Competent Authority (NSEL), National Spot Exchange Limited DECISION The Bombay High Court SET ASIDE the auction sale of properties (Sale Certificate dated 31st August 2020) to Rudraveerya Developers Ltd., finding the entire auction process vitiated by fraud, mala fide conduct, and gross undervaluation. KEY FINDINGS Fraudulent Valuation Process: - Property initially valued at ₹60 crores (May 2018) was subsequently devalued to ₹10 crores (June 2020) - The 2020 revaluation wrongfully reclassified residential plotted development land as "agricultural land" without justification - Court found the ₹60 crore valuation itself questionable, with licensee fee reportedly ₹50 crores—an untenable proposition where license fee would exceed land value by 5x Procedural Irregularities: - First auction notice published only in Chandigarh editions of Hindi/Punjabi newspapers (limited circulation in Hindi-speaking Karnal district) - Subsequent auction notices advertised only on Quiker Realty's website with no data on viewership - Property location misrepresented on website map - Closed-bid auction method adopted instead of open auction to maximize price Collusion Evidence: - Common director (Rajan Goyal) in both bidding companies: Brij Gopal Construction (₹8 crore bid) and successful bidder Rudraveerya Developers (₹10 crore bid) - Two other bidders offered less than ₹5 crores, suggesting manipulated bidding Breach of Fiduciary Duty: The Competent Authority owed fiduciary duty to 13,000 NSEL scam victims (₹5,600 crore scam) but instead: - Failed to ensure adequate publicity - Appointed biased valuers (Quiker Realty) - Deliberately undervalued properties to favor predetermined entities COURT'S REASONING The court rejected arguments that: - Sale completion bars challenge (fraud vitiates all acts) - Appellant's delayed challenge is barred (public interest in preventing fraud overrides procedural delays) - Third-party auction purchaser's rights are sacrosanct (no protection for fraudulently conducted sales) The court emphasized this was a "scam within the scam"—depriving victims further through mala fide asset liquidation. DIRECTIONS ISSUED 1. New Competent Authority to be appointed within 4 weeks 2. New Valuer (not Quiker Realty) to conduct fresh valuation 3. Fresh auction with wide publicity in local newspapers and electronic media 4. Refund of ₹10.09 crores from Rudraveerya within 4 weeks 5. Quiker Realty disqualified for 5 years from valuations/auctions for Maharashtra Government 6. Investigation and action against Competent Authority members and Quiker Realty within 6 months 7. All interim applications dismissed --- COURT: Bombay High Court (Justices Kamal Khata & A.S. Gadkari) DATE: 8th May 2026 This case analysis is maintained by casestatus.in based on publicly available court records.