A major property investment firm has been hit with a £22.8 million deceit claim, it has been announced.
A leading
property investment group is facing a High Court battle with the government over accusations of deceit and lawful conspiracy.
The claim for £22.8 million was lodged last week by the Lord High Chancellor and the Secretary of State for Justice, relating to the Topland Group's 2003 purchase of a family court from Standard Life.
Topland, part-run by tycoon Eddie Zackay, are accused of conspiring with the government's property advisors LSM to fix a rent higher than market value, a charge the alleged conspirators deny.
Although no formal defence by Topland has been lodged, a spokesman for the firm said that the deal had already been investigated by the Serious Fraud Office, who found there was no case to answer.
"Given this, it is surprising that the former Lord High Chancellor should, in his final days in office, decide to waste public money on this meritless action. The allegation is emphatically denied," the spokesman added.
Property Week magazine reported in October 2003 that Topland spent 58 million on the site at 42-49 High Holborn, London WC1.
Posted by Lisa Fear.
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