Salman Rushdie’s ancestral house in the posh Civil Lines area here, which the author’s father had agreed to sell to a Congress leader in 1970 but the deal fell through, has been valued at Rs 130 crore by Delhi High Court.

The dispute had reached the Supreme Court, which on December 3, 2012, ruled in favour of former Congress leader Bhiku Ram Jain’s side and directed the Rushdies to hand over the house to the Jains for the market price as on date of the order.

The apex court, however, left it to Delhi High Court to determine the market value of the property.

The high court has determined the market value of the house, as on December 3, 2012, to be Rs 130 crore as the Rushdies had said they had a buyer to purchase the house at that price.

Justice Rajiv Sahai Endlaw said that if the Jains were unable to purchase at that price, the Rushdies would have to sell the house for Rs 130 crore within six months to some other buyer.

If the Rushdies are unable to sell it for a minimum Rs 130 crore within the given time, 60 days from then, the Jains would be entitled to purchase the property for Rs 75 crore, which was the circle rate on December 4, 2012.

The court said that if the Jains cannot purchase the property for Rs 75 crore, the Rushdies would stand relieved of the agreement entered into by both sides in 1970.

The Booker Prize winner’s father, Anis Ahmed Rushdie, had struck a deal with Bhiku Ram Jain to sell the house for Rs 3.75 lakh. Jain had paid Rs 50,000 to Anis Rushdie and given an assurance to had over the remaining amount after the owner got clearance certificates from income tax authorities.

The two families then got into a dispute and accused each other of not respecting the terms of the agreement. The Jains filed a suit in 1977 requesting the trial court to direct Anis Rushdie to honour the December 1970 agreement. PTI