In a fresh chapter of India’s enduring battle against the 1992 securities scam orchestrated by the late stockbroker Harshad Mehta, authorities have announced the public auction of a luxurious residential flat in Mumbai’s upscale Juhu neighborhood. The property, linked to a key associate of Mehta’s fraudulent empire, underscores the relentless efforts to liquidate assets and recover billions siphoned from the nation’s financial system over three decades ago.
The auction notice, issued by the Office of the Custodian under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, highlights the persistent legal machinery grinding toward restitution. This development revives memories of the “Big Bull’s” audacious manipulations that once inflated stock prices to dizzying heights before triggering a market crash.
The Property on the Block
At the heart of the auction is Flat No. 202 in the prestigious Vandana Cooperative Housing Society Limited, situated on Church Road, Santacruz (West), Mumbai – 400049. Spanning a generous 1,150 square feet of super built-up area across three constructed tenements, the flat boasts modern construction adhering to contemporary standards.
This sea-facing residence, nestled in the vibrant Juhu enclave known for its celebrity residents and beachfront allure, represents a slice of Mumbai’s elite real estate. Prospective buyers can inspect the property on specified dates, offering a rare glimpse into a asset frozen in time since its attachment amid the scam’s fallout.
Roots in the Infamous 1992 Scam
The flat’s journey to the auction block traces back to the seismic Harshad Mehta scandal, where the broker exploited banking loopholes to divert over ₹4,000 crore into the stock market, artificially boosting indices like the Sensex before the bubble burst. Mehta, who died in custody in 2001, left behind a web of entities and associates whose assets were seized to repay defrauded banks and investors.
This particular property belongs to the late Sushila J. Shah, a pivotal partner in Romil Exports, a firm entangled in the scam’s transactions. Shah, classified as a judgment debtor alongside notified entities like Harshad Mehta and Orion Travels Private Limited, saw her holdings attached under Section 3(2) of the 1992 Act. The attachment stemmed from Special Court Application No. 1/05 of 2012, with execution ordered via Section 4(1) of the same legislation, empowering the custodian to sell assets of those involved in securities offenses.
Over the years, the custodian has auctioned numerous such properties, disbursing over ₹6,000 crore to creditors, though liabilities far exceed recoveries at around ₹16,000 crore. This Juhu flat joins a lineage of high-profile sales aimed at bridging that gap.
A Pattern of Auctions: From Dalamal Chambers to Juhu
This is not the first time assets tied to Shah and her Romil Exports partnership have faced the gavel. Historical records reveal a series of auctions targeting properties linked to the same judgment debtors, reflecting the custodian’s methodical asset liquidation strategy.
In 2018, a compact 283-square-foot commercial unit in Dalamal Chambers, New Marine Lines, was sold for ₹80 lakh – below the ready reckoner rate but a significant recovery nonetheless. That space, also under Shah’s name, was auctioned through tenders at the custodian’s Mumbai office, underscoring the interconnected web of Mehta’s associates.
Earlier that year, the very same Juhu flat in Vandana CHS was slated for auction, only to be deferred amid legal proceedings. By 2021, twin flats (Nos. 202 and 301) owned by Shah and her partner Niranjan J. Shah – another Mehta crony later implicated in unrelated narcotics probes – were again queued for public tender by November 25. Though that sale was postponed, the current notice signals finality.
These efforts echo broader patterns: In 2009, eight interconnected luxury flats in Worli’s Madhuli Building, once Mehta’s family stronghold complete with a billiards room and mini-theater, fetched crores after years in limbo. Bangalore’s Raheja Towers commercial spaces met a similar fate that year, while ongoing disbursements as recent as 2017 cleared another ₹614 crore from seized holdings. Each auction chips away at the scam’s shadow, but the process remains a marathon of judicial oversight.
Auction Details and How to Participate
The sale is open to private individuals, companies, and government semi-government entities, strictly for the purchase of foreclosed property. Bids must be submitted in sealed tenders, with terms and conditions fixed by the custodian – a copy of which is mandatory for participation.
The auction will unfold on November 10, 2025, at 3:00 PM, at the custodian’s office on the 10th Floor, Nariman Bhavan, 227, Backbay Reclamation, Mumbai – 400020. Working hours align with standard government schedules, and interested parties are urged to contact the public information and financial services division or visit the official website for forms and guidelines.
The Special Court reserves the right to accept or reject any bid without explanation, ensuring transparency in this high-stakes recovery.
Legacy of a Financial Firestorm
As the gavel prepares to fall on this Juhu gem, the Harshad Mehta saga serves as a stark reminder of the perils of unchecked market exuberance. From the 1992 crash that eroded public trust in India’s nascent capital markets to today’s fortified regulations under the SEBI Act, the scam’s ripples continue to shape financial governance.
Yet, with assets like this flat entering the market, there’s a silver lining: Each sale funds restitution, inching closer to justice for the institutions and taxpayers left in the wake. For real estate enthusiasts, it’s an opportunity to own a piece of Mumbai’s storied past – albeit one forged in controversy.
Also Read: This is the rate at which property is sold in the building once occupied by Harshad Mehta
