SHAME!Caesar’s wifeshould beabovesuspicion.Nearly 15 lakhpeople wereaffected dueto thedemolitiondrive in Delhi.Thousands ofshopkeepershad to closeshop, lookingfor alternativeemployment.Three peopledied in policefiring. Nowwe find thevery peoplewho hadpresided overthe sealingswith the aimof cleansingthe systemwere notabove boardthemselves.Is the conscienceof thepowerfuldead?

The Mall in your court

Sabharwals' shop talk

LAND developers BPTP and
sons of former chief justice of
India Y K Sabharwal are jointly
building a massive eight-storied
commercial complex in
Noida on four acre plots
against which a Sabharwal
company took a bank loan of
Rs 28 crore last year.
The semi-finished building
in Sector 125 of Noida covers
three plots, A 3,4 and 5. It is
being constructed by BPTP in
partnership with Sabharwal’s
sons, Chetan and Nitin.
The land is owned by
Pawan Impex Private Limited,
a Sabharwal company in
which BPTP developers Kabul
and Anjali Chawla are equal
partners with Chetan and
Nitin.
The proposed IT park at
Sector 125 has a saleable area
of 3.2 lakh square feet.
According to documents
available with MiD DAY,
Pawan Impex bought the land
from the Noida Authority.
Last year, the company, with a
capital of Rs 3 crore, took a
loan of Rs 28 crore from the
Union Bank of India,
Connaught Place branch, for
building an IT Park on it.
Asked how a firm with
such a modest capital could
have been loaned Rs 28 crore,
UBI general manager S C
Sinha said Chetan and Nitin
Sabharwal had matched the
loan with an equal investment.
In addition to the Rs 3
crore capital, they had managed
an unsecured loan of Rs
7 crore.
Also, they had shown Rs
18 crore as the projected
income from prospective buyers
of the commercial
complex. “All this put together
makes Rs 28 crore from
their side. We have matched it
with a loan of Rs 28 crore, of
which Rs 15 crore has already
been disbursed,” Sinha said.
Bank officials said this was
the first major construction
project of the Sabharwal
brothers. “They had to take
the help of the BPTP in this
project,” they said, asserting
that the building at Sector
125 was only being marketed
by BPTP. However, when it
was pointed out that the construction
itself was being
carried out by BPTP, the officials
said the bank was
making payments directly to
the contractors and material
suppliers.
A banner fluttering outside
the semi-finished
building has the name of
BPTP as its developer. BPTP’s
website calls the magnificent
structure — Park Centra, “a
very contemporary business
place.” With all advanced
security system & a complete
access control, wi-fi connectivity,
broadband cables, etc.,
Park Centra is truly a ‘world
within’, says BPTP.
Be it BPOs, Contact
Centres, or, of course, IT and
ITES companies, this is a business
address that will make
any organisation proud, the
company added.
As reported by MiD DAY
earlier, Pawan Impex began
with a capital of Rs 1 lakh.
Soon after it entered into a
partnership with BPTP’s promoters
Kabul and Anjali
Chawla, it increased its capital
base to Rs 3 crore. Half of
this amount has been invested
in the company by the
Chawlas. The Bank agreed for
a loan of Rs 28 crore after
Pawan Impex invested Rs 7
crore more.
Former Prime Minister I K
Gujral’s nephew Mohit Gujral
has conceptualised and
designed the building. The
ground plus seven floors with
two basement, is nearing
completion.
Earlier, MiD Day has
reported that the three companies
including Pawan
Impex were running from the
residence of Sabharwal in
Punjabi Bagh. The companies
were shifted to the official
residence of Sabharwal, 6
Moti Lal Nehru Place, when
he was the Supreme Court
judge.
BPTP’s Kabul and Anjali
have invested Rs 75 lakh each
in Pawan Impex. Chetan and
Nitin invested Rs 75 lakh
each, taking the Capital of
Pawan Impex to Rs 3 crore.

SAB chalta hai

Builders invested in Sabharwals' company

MALL builders Kabul Chawla
and his wife, Anjali, had made a
direct investment of Rs 1.5 crore
in Pawan Impex Private Limited,
one of the many companies run
by the sons of former chief justice
of India Y K Sabharwal.
The authorised share capital
of Pawan Impex, owned by
Chetan and Nitin Sabharwal,
increased from Rs 1 lakh to a
whopping Rs 3 crore last year.
While Kabul Chawla became a
partner on October 23, 2004,
Anjali took over as director on
February 12, 2005.
Rising share capital
According to the list of shareholders
available with MiD DAY,
as of September 30, 2006, Kabul
and Anjali held 7.5 lakh shares,
valued at Rs 75 lakh each, thereby
making a direct investment of
Rs 1.5 crore in the company.
An extraordinary general
meeting of Pawan Impex on June
21, 2006 decided to dramatically
increase the authorised share
capital of the company from Rs 1
lakh to Rs 3 crore. The company
had been showing Rs 1 lakh as its
nominal capital ever since its
registration in 2002.
Rs 28-cr loan
Not only did Pawan Impex
grow by leaps and bounds, it also
managed to secure a massive loan
of Rs 28 crore from the Union
Bank of India by mortgaging “first
charge on all tangible movable
machineries, plant and machinery,
fixtures, fittings and all other
fixed assets lying at A-3, 4&5,
Sector-125, Noida or any other
places is to secure the term loan of
Rs 28 crore.” The mortgage was
secured on August 22, 2006.
As per Form 18 filed by Pawan
Impex under the Companies Act
on January 30, 2002, copy of
which is available with Mid Day,
the original registered office of
the company was at Sabharwal's
Punjabi Bagh house. On January
6, 2004, the registered office of
the firm was changed to 6, Moti
Lal Nehru Place.

Lift Kara De...

Shock, anger at sabharwal's mall-aa-mall

If all the revelations are true,
then the judiciary has
slumped to sea-deep level and
there seems to be no hope of
arresting the dwindling faith
of citizenry in the judicial
institution which is the last
hope of the citizen.
K K Sud
Former Additional Solicitor
General
It is very unfortunate. It is
height of indiscretion.
Ashok Arora
Former secretary, Supreme Court
Bar Association
If its true, he should be
brought to book and must be
prosecuted. This man demolished
the whole of Delhi.
R K Anand
Former MP and senior lawyer
There must be a probe into
this matter so that the belief
of the people in the judicial
system remains. No one is
above the law. The government
should take suo motto
cognizance of the matter. At
least MiD-DAY has dared to
bring out some basic facts.
Praveen Khandelwal
President, CAIT
This matter needs further
investigation. One needs to
find out whether Sabharwal
or his sons have a share in the
particular shopping malls.
There is a strong suspicion
that there might be a share of
the family in these businesses
if there is a close connection
with the leading mall developers
in the capital.
Secondly, in the sealing case,
Sabharwal would not have
presided over it. He should
have transferred the case to
another bench.
Prashant Bhusan
Senior lawyer
NO TO SEALING: Locals clash with cops during anti-sealing agitation in Seelampur FILE PHOTO
What steps do you propose
to take to remove
corruption in the judiciary?
There is a general perception
that the judiciary is very
lenient about this. Whether it
is corruption within the judiciary
or outside the judiciary,
one has to take all necessary
measures to remove corruption.
Wherever little
corruption is there, as far as
the subordinate judiciary is
concerned, we see every day
the compulsory retirement of
judicial officers. As far as the
higher judiciary is concerned,
it is very, very
minimal.
October 21, 2005.
Investigate if sons have more stakes, say Delhiites
There is an outcry against former chief justice of
India Y K Sabharwal, the man behind the sealing
drive in Delhi, following MiD
DAY's expose that his two sons
have close links with leading
mall developers. A day after the
MiD DAY report, people cutting
across all sections
demanded a thorough
inquiry into the
matter to restore the
faith of the citizens in the judiciary
and to prove that all are equal.

Golden words
Whoever is part of the builder
lobby, be it judges, their relatives
or any other government
officials, action should be
taken against them. We were
saying from the beginning
that the decision to seal shops
was a big conspiracy. The MiD
DAY news report is factual
and has strength.
The decision to seal shops in
Delhi was taken to benefit
some people.
The Congress had been
saying this right from the
beginning
Ram Babu Sharma
President, DPCC
An average Delhiites is feeling
cheated in the name of
law. The law should now
take its own course. It does
not matter how big a person
is, he is not above the
law.
Dr Harshvardhan
Delhi BJP President
These are serious allegations
of unprecedented
nature which strikes at the
root of the independence
and integrity of the rights
of judicial affairs in
India.
A senior Advocate

GOL MALL HAI

Truth behind sealing

FORMER chief justice of India, Y
K Sabharwal, who unleashed a
sealing drive against small-time
neighbourhood shops in Delhi,
has close links with leading mall
developers.
One of the biggest mall
builders of the country, Business
Park Town Planners (BPTP), is a
business partner of Sabharwal's
sons Chetan and Nitin.
BPTP’s promoter and chairman,
Kabul Chawla, and his wife
Anjali, are directors in
Sabharwals’ company Pawan
Impex Pvt Ltd, which has its registered
office at the ex-CJ's
residence at 3/81, Punjabi Bagh,
as reported by MiD DAY on May
2. Pawan Impex, along with two
other firms, earlier had its registered
office at 6, Moti Lal Nehru
Park, the official residence of
Sabharwal when he was a
Supreme Court judge.
While Kabul Chawla became
a director in Pawan Impex on
October 23, 2004, his wife Anjali
was taken on board on February
12, 2005. Sabharwal joined the
Supreme Court on January 28,
2000 and went on to become the
chief justice of India on
November 2, 2005.
BPTP, with a paid up capital
of Rs 232 crore, has developed
landmark malls, including CTC
at Najafgarh Road, CBD at
Surajmal Vihar in East Delhi and
Shop-in Park, Shalimar Bagh,
besides several other commercial
and residential complexes.
MNCs everywhere
It is also coming up with malls
and commercial complexes in
Faridabad, Gurgaon and NOIDA.
The company is headquartered
at the DCM building at
Barakhamba Road while its marketing
office is in M-11 Middle
Circle, in Connaught Place.
Curiously, the virtual who’s
who of multi-national companies
are among the clients of BPTP.
These include Mc Donald's,
Levis, Lee, Adidas, Nike, Pepe
Jeans, Woodland, Benetton, Lee
Cooper and Biba. This makes the
association between the ex-CJ's
family and BPTP all the more significant.
There had been charges from
traders and political parties that
MNCs and mall developers were
behind the sealing drive as they
wanted to consolidate their position
in the Indian markets by
wiping out neighbourhood shops
and forcing the consumers to
rely on their posh, and more
expensive, outlets in malls.
Thousands of shops were
sealed on Sabharwal’s order,
while the government squirmed
at the prospect of traders turning
against it.
The Congress eventually
faced a humiliating defeat in the
MCD elections.

Mall-aa-Mall

Sabharwal sons' Co under I-T scanner

THE I-T notice sent to Pawan
Impex is raising the same
questions which Mid Day did,
in its expose dated May 25,
2007. The expose had highlighted
how Pawan Impex,
the company owned by the
sons of former chief justice of
India Y K Sabharwal, had
seen an amazing rise in its fortunes
over the last two years.
BPTP partnership
The company, which had
humble beginnings, took a
leap towards big times after
BPTP’s Kabul Chawla and his
wife, Anjali, made a direct
investment of Rs 1.5 crore in
it. The share capital of Pawan
Impex increased from Rs 1
lakh to a whopping Rs 3 crore
last year. While Kabul Chawla
became a partner on October
23, 2004, Anjali took over as
director on February 12,
2005.
Info-tech park
Pawan Impex is also building
an I-T park on four acres of
land in sector 125, NOIDA.
The eight-storey building,
part of an ambitious Rs 56
crore project, is being constructed
by BPTP. According
to documents available with
MiD DAY, Pawan Impex
bought the land from the
Noida Authority. Last year,
the company, with a capital of
Rs 3 crore, took a loan of Rs
28 crore from the Union Bank
of India, Connaught Place
branch, for building the IT
Park on it.
Asked how a firm with
such a modest capital could
have been loaned Rs 28 crore,
UBI general manager S C
Sinha told MiD DAY that
Chetan and Nitin Sabharwal
had matched the loan with an
equal investment. In addition
to the Rs 3 crore capital, they
had managed an unsecured
loan of Rs 7 crore.
Also, they had shown Rs
18 crore as the projected
income from prospective buyers
of the commercial
complex. “All this put together
makes Rs 28 crore from
their side. We have matched it
with a loan of Rs 28 crore, of
which Rs 15 crore has already
been disbursed,” Sinha said.
Official residence
Interestingly, Pawan Impex
had its registered office at the
6, Moti Lal Nehru Place, the
official residence of the then
CJI, along with two other
firms, Sabs Exports, Sug
Exports, jointly owned by the
ex-CJI’s sons Chetan and
Nitin.
They were shifted to 6,
Moti Lal Nehru Place during
Sabharwal’s stay there in
January, 2004. After about 10
months, the offices of the
companies were shifted back
to the Punjabi Bagh house.

I-T probes firm of ex-CJI's sons

THE Income Tax Department
is inquiring into the land
acquisitions, bank accounts
and financial dealings of a
company owned by the sons of
former chief justice of India Y
K Sabharwal, Pawan Impex
Private Limited.
Pawan Impex, owned by
Chetan and Nitin Sabharwal,
has been served a notice
under Section 142(1) of the
Income Tax Act. The notice
(dated May 28, 2007) is
accompanied by a questionnaire
aimed among other
things at getting detailed
information about the land
dealings of the Sabharwals
with the NOIDA Authority,
with payment details. As
reported by MiD DAY in a
series of exposes over the last
few weeks, the company owns
sprawling properties in
NOIDA, including an underconstruction
I-T Park on four
acres of land in Sector 125,
and a factory in Sector 8.
Another company owned by
Nitin and Chetan , SABS
Exports, is also spread over
two huge plots of land in
Sector 63.

THE I-T QUESTIONNAIRE, A COPY OF WHICH IS AVAILABLE WITH
MID DAY, HAS ASKED PAWAN IMPEX FOR THE FOLLOWING:
1. A brief note on the business activities alongwith complete details of all the premises owned
and taken on rent.
2. Comparative chart of trading of preceding three years with GP rate.
3. Details of all bank accounts along with bank reconciliation statement, if required. Statement
of all the bank accounts with the narration of all the debit and credit above Rs 20,000.
4. Details of all the directors. Provide their name, address, PAN, Ward where they are being
assessed. What is their source of income? Copy of acknowledgment of filing of return of
income AY -2004-05 onwards.
5. Details of unsecured loans with the name address and amount, confirmed copy of a/c
alongwith copy of bank statement, income tax return copy.
6. Details of addition made to the fixed assest with the source of acquisition.
7. Details of sundry debtors and creditors with their names and address PAN and amount.
8. Details of project work in progress (with documentary evidences).
9. Details of land acquired from Noida authority with payment details and copy of agreement,
if any.
10. Details of squared up accounts.

Mall Bandwagon

A WEEK before Y K Sabharwal took over as Chief Justice of India on November 2, 2005,
one of the several companies run by his sons Nitin and Chetan, Harpawan Constructors
Private Limited, entered into an important partnership. On October 25, 2005,
Purshottam Bhageria, an ace mall developer and owner of the specialty polyester filament
yarns major Filatex India Limited, was appointed director of Harpawan Constructors.
Bhageria brothers Seven months later, on May 20, 2006, his brother, Madhu Sudan Bhageria, too became a partner in Harpawan Constructors Limited, registered at the 3/81 Punjabi Bagh residence of the former CJI along with Pawan Impex, Sabs Exports and Sug Exports. All
these companies are jointly owned by Chetan and Nitin.

Best in business
Interestingly, the Sabharwal brothers had incorporated this company on April 8, 2005. As in the case of Pawan Impex partnered by BTPT's Kabul and Anjali Chawla, it wasn’t long before the best in the business decided to do business with Harpawan Constructors despite its modest
operations. The powerful Bhageria brothers got on board the company within six months of its incorporation. The list of shareholders released by Harpawan Constructors on August 31, 2006 shows that while Chetan and Nitin Sabharwal held 3,750 shares each, Purshottam Bhageria held
2000 and Madhu Sudan Bhageria 500. Y K Sabharwal was then chief justice of India and passing orders on the ongoing sealing drive. Interestingly, Purshottam Bagheria announced his
grand plans of developing Square One, a shopping mall exclusively dedicated to luxury brands, two months after striking a partnership with the Sabharwals' Harpawan Constructors. It was trotted out as an alternative to London's Burlington Arcade or Place Vendome in Paris dedicated to luxury brands.

Mall developers

The Bhagerias are the second major mall developers to have a close business relationship
with the Sabharwals. The BPTP, developers of malls and commercial complexes all over Delhi and the NCR, are partners with the Sabharwals in another of their companies, Pawan Impex Private Limited. As many as four companies of the Sabharwals had their registered office at
the 3/81 Punjabi Bagh residence of the former CJI, along with Pawan Impex, Sabs Exports and Sug Exports. The last three companies even had their registered offices at 6, Moti Lal Nehru
Place, the official bungalow of Justice Sabharwal when he was a Supreme Court judge.

It All Squares Up

Addresses shifted to official residence

the original registered office of the company was at Sabharwal’s Punjabi Bagh home. Two years later, on January 6, 2004, the registered office of the firm was changed to 6, Moti Lal Nehru Place. This was the official residence of Sabharwal as the then Supreme Court judge. Finally, on October 23, 2004 the company’s registered office was once again shifted back to 3/81 Punjabi Bagh. Similarly, the registered office of Sug Exports, also owned by Chetan and Nitin, was shifted from 3/81 Punjabi Bagh residence to the ex CJI’s official residence at 6, Moti Lal Nehru Place on January 6, 2004. As in the case of Pawan Impex, after about 11 months, Sug Exports
was shifted back to the Punjabi Bagh house. Asked for his reaction yesterday evening, the former CJI said the companies were registered at the residence only for postal purposes. He
said he was not aware that the addresses of the companies were shifted to his official residence
when he was a judge of the SC. “I don’t know whether it was ever shifted (from Punjabi Bagh to Motilal Nehru Place) or not. Who told you it was shifted? I don’t think it was shifted. When
was it shifted? Give me the dates,” Sabharwal said. “I cannot help it if nobody understands the legal point.
The postal address is not barred anywhere. Letters come. Registered office (of the three companies) is for postal purposes,” he added. When questioned if the shifting of the registered office to Motilal Nehra Place was legal, Justice Sabharwal hung up. When contacted, MCD
spokesperson D C Mathur, said, “Any premises not falling under mixed land use or commercial
activity roads as specified in the notification of MCD should be sealed.” Even as sealing and demolitions were carried out in Sabharwal’s own backyard of Punjabi Bagh, MCD inspectors
on the prowl in the area chose to ignore the letter box with the names of all the three companies on it hanging outside the entrance to the 3/81 house. The ground floor is currently under renovation to prepare the place for Sabharwal’s return after his retirement. Currently,
Sabharwal’s elder brother, Jagmohan, lives in the house with his family. Jagmohan
said, “It is a postal address. It is for the purpose of receiving post that the registered office
is there. No commercial activity takes place here.”

Articles on Sabharwal

FORMER Chief Justice of India Y K Sabharwal,
who nearly demolished half of Delhi to stop
commercialisation of residential areas, had
three commercial companies owned by his
sons running from his official residence at
6, Moti Lal Nehru Place.
All the three firms, Sabs Exports, Sug
Exports and Pawan Impex Private Ltd,
jointly owned by the ex-CJI’s sons Chetan
and Nitin, were originally registered at the
Sabharwals’ family home at 3/81 Punjabi
Bagh. They were shifted to 6, Moti Lal
Nehru Place during Sabharwal’s stay there
in January, 2004. After about 10 months, the
offices of the companies were shifted back to
the Punjabi Bagh house.
As per Form 18 filed by Pawan Impex under
the Companies Act on January 30, 2002, a
copy of which is available with MiD DAY,