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Lender of the defunct hotel business to the real estate company Rajesh Lifespace have set a base price of ₹305 crore for the final auction of the hotel property at Powai in Mumbai, as they seek to recover outstanding loans of ₹621 crore to the firm.
People familiar with the process said bidders would have to raise their bids by Rs 10 crore in each round and the lowest bid would be eliminated.
A person said, “The auction will begin on January 24, with all bidders expected to progressively match or beat the highest bidder. If a bidder does not place a bid, his last bid will be declared final.” will be taken as bid. Banks have time till early March to submit final resolution plan National Company Law Tribunal, The committee of creditors has given the green signal to extend the resolution deadline.
Bankers are expecting aggressive bids for the property as it is a rare hotel that is ready for sale with all approvals, such as land, building and government licenses for restaurants and liquor. Also, the transfer to the end buyer will be transparent as it takes place through a court-supervised process.
Earlier this month, ET reported that banks had received six initial offers for Rajesh Business & Leisure Hotels, including those from DMart promoter Radhakishan Damani’s investment vehicle, Bright Star Investments.
Other bidders were from Ahmedabad hospitality and restaurant group Sankalp EntertainmentRockwood Hotels & Resorts based in Mumbai, Shri Ram Multicom based in Kolkata, Delhi based Unison Hotel And Ahmedabad-based rare asset reconstruction company Rajesh Business and Leisure Hotels had tied up with the Singapore company. GHM Hotel To operate a 316-room five-star hotel under the brand ‘The Chedi’ in Kanjurmarg Near Powai. However, the company could not complete the project due to paucity of cash.
It has been marked as a non-performing asset on the banks’ books since 2019.
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