Central Bank to auction Wadia's Thane land for 1,965cr to recover GoAir debt
MUMBAI: Over 94 acres of land owned by Wadia Realty at Bhayanderpada on Thane's Ghodbunder Road will be auctioned by Central Bank of India next month at a reserve price of Rs 1,965 crore to recover loans to Go Airways.
This auction comes in the wake of Wadia Realty being the mortgagor and corporate guarantor of the airline, which has defaulted on its loans.The property, mortgaged to Central Bank of India, Bank of Baroda, and IDBI Bank, will be sold under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.
The auction, scheduled for July 22, aims to recover a part of the total outstanding of Rs 3,918 crore, representing the principal amount along with accrued interest due as of August 31, 2023. The earnest money deposit requirement is Rs 98 crore equivalent to 5% of the reserve price.
This decision follows the bankruptcy of Go Airlines, now undergoing insolvency resolution proceedings under the Insolvency and Bankruptcy Code.
The Wadia group, led by industrialist Nusli Wadia, earlier had Bombay Dyeing and Britannia Industries as its flagship businesses have turned to real estate in a big way in a bid to monetise their sizable land holdings in Mumbai. Last year, the group sold its prime real estate in Worli, which was partly encroached upon, to Sumitomo Realty & Development Company to repay debt and fund future projects.
Central Bank had earlier said that it had fully provided for its loan to the airline and had already published the public notice under
SARFAESI Act to acquire the land parcel, which has now been put up for auction. Another lender, Bank of Baroda, had said that it was confident of fully recovering its dues from the sale of real estate security.
Ghodbunder Road has emerged as a hub of real estate activity thanks to the emergence of IT jobs in Thane and along Thane-Belapur Road. Moreover, the upcoming Metro 4, which starts from Ghodbunder Road, will increase the areas' connectivity with south Mumbai.
State govt is also proposing to start work on the Thane-Borivli tunnel which will improve the region's connectivity.
Earlier this week, real estate developer Purvankar acquired
