Mumbai: Central Bank of India has reduced the reserve price for a 94.7-acre land parcel in Thane owned by Wadia Realty Private Limited, a part of the Wadia Group that promoted the now-defunct GoAir. This move comes as lenders intensify efforts to recover dues linked to the grounded airline.
Price Reduction Details
In its latest e-auction notice, the lender-led consortium has set a reserve price of Rs 1,525 crore, marking a significant reduction from the initial Rs 1,965 crore. The price was subsequently trimmed to approximately Rs 1,604 crore before being lowered further, resulting in a total markdown of Rs 440 crore. This reduction highlights weak buyer interest and the lenders' urgency to monetise the asset.
Auction Schedule and Requirements
The auction is scheduled for June 9. Bidders must submit an earnest money deposit of Rs 76.25 crore, which is 5% of the reserve price, and place bids in multiples of Rs 1 crore.
Legal Framework and Loan Details
The sale is being pursued under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act against Wadia Realty, which acted as a corporate guarantor for GoAir. The consortium, comprising Central Bank of India, Bank of Baroda, and IDBI Bank, had provided a loan, of which over Rs 3,918 crore was pending as of August 31, 2023, excluding accruing interest and expenses.
Asset Description
The asset includes contiguous land parcels in Ovale and Bhayanderpada along Ghodbunder Road in Thane, a key real estate corridor. Abutting a 60-meter-wide road, the land parcel is considered a prime development opportunity for large residential or commercial projects, subject to the resolution of legal issues.
Auction Platform
The auction will be conducted via the PSB Alliance's BAANKNET portal.
