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.
