The Karnataka High Court has directed Bharatiya Janata Party (BJP),Member of Parliament, Rajeev Chandrasekhar, to disclose on oath entire assets both movable and immovable, possessed by him.

A division bench of Chief Justice Abhay Oka and Justice Mohammad Nawaz while issuing rule, on petition filed by Chandrashekhar challenging the order passed by the Debt Recovery Appellate Tribunal, (Chennai), granted him time till September 13, to disclose his assets.

It said "If the petitioner wants an interim order, he must disclose before this court on oath the entire assets, both movable and immovable, possessed by him. Only thereafter, the prayer for interim relief can be decided." It also raised doubts on the proceedings initiated against him saying "There is a serious doubt whether the petitioner could have been sued as a guarantor."

However, the court said ad-interim relief granted earlier, to continue till then, (September 13) subject to the condition that the petitioner will not part with the immovable assets held by him without the leave of the court. By an earlier order, the court has stayed the orders passed by DRAT and DRT.

Chandrashekhar was the Managing Director of a Company namely, India Paging Services Limited. India Paging Services Limited obtained a loan of around Rs 42 Crore, from Industrial Finance Corporation of India (IFCI Limited) in the year 1997.

Chandrashekhar submitted an undertaking stating that he would not resign from India Paging Services Limited, without the consent of IFCI, until the loan of IFCI is repaid.

India Paging defaulted in repayment of the loan. IFCI filed an application for recovery of its dues before DRT Bangalore. By an order dated May 31, 2016 allowed the application filed by IFCI and further held that Chandrashekhar has breached the terms of the undertaking and hence, he is liable to pay the outstanding amount. This order was challenged by him before the DRAT, which dismissed his appeal and confirmed the order of DRT Bangalore.

Read the Order



