GoAir dues: Banks slash reserve price of Thane plot

Mumbai: Central Bank of India has cut the reserve price for a 94.7-acre land in Thane owned by Wadia Realty Private Limited, part of the Wadia Group that promoted the now defunct GoAir, as lenders step up efforts to recover dues linked to the grounded airline.In its latest e-auction notice, the lender-led consortium has fixed a reserve price of Rs 1,525 crore, a sharp reduction from the initial Rs 1,965 crore. The price was later trimmed to about Rs 1,604 crore before being lowered further, taking the total markdown to Rs 440 crore, underscoring weak buyer interest and lenders' urgency to monetise the asset. The auction is scheduled for June 9. Bidders are required to submit an earnest money deposit of Rs 76.25 crore—5% of the reserve price—and to place bids increasing in multiples of Rs 1 crore. The sale is being pursued under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act against Wadia Realty, which had 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 in dues as of Aug 31, 2023, excluding accruing interest and expenses. The asset comprises contiguous land parcels in Ovale and Bhayanderpada along Ghodbunder Road in Thane, a key real estate corridor. Abutting a 60m-wide road, the land parcel is seen as a prime development opportunity for large residential or commercial projects, subject to resolution of legal issues. The auction will be conducted via the PSB Alliance's BAANKNET portal.