Uphaar verdict: Gopal Ansal gets a one year jail term

The Uphaar tragedy has come back to haunt real estate baron Gopal Ansal with the Supreme Court sentencing him to a one year prison term for causing death due to negligence. The Ansal group had built and operated the Uphaar cinema. The Ansal family is known for erecting massive townships.

The incident that led to the death of 59 people in a major fire in 1997 virtually led to the downfall of the family, leading to divisions within the Ansal clan. The Ansal group has been divided into many entities with four major companies operating in the construction and real estate space. Ansal Properties and Infrastructure or Ansal API is a listed entity. Ansal Buildwell, Ansal Housing and Construction and Ansal Agencies are other major players in the sector.

The court on Thursday gave Gopal Ansal, 69, the Chairman of Ansal Buildwell, a month's notice to surrender. The other co-accused Sushil Ansal, 77 will not be jailed because of his age. The court said that the sentence earlier served by the Ansals was factored into today's verdict.

The Ansals had paid Rs 30 crore fine after the CBI inquiry had nailed the family for violation of basic fire safety rules - exit routes had been blocked to add more seats. The campaign against the Ansals has been led by Neelam Krishnamurthy, whose young son and daughter died in the fire.
 
Ansal, once the biggest brand in country's real estate market,  witnessed a gradual erosion in its brand value after the incident and lost ground to DLF and Unitech in the Delhi market. The group had developed India's first mall, Ansal Plaza in central Delhi. Ansal Plaza is now being refurbished with a new set of tenants and brands to attract fresh set of customers.

Sources in the industry said that the Uphaar incident was largely responsible for the debacle of the family and its business. "The family withered away into many groups and lost control over the lucrative realty sector. They were largely into integrated townships and re-developing expensive properties. Over the years the entire focus had shifted to the legal case and suspects had also deposited the money asked by the court, but the matter was contested by the families of the victims, which has led to the new developments," said an insider.