Central Bank of India has initiated an e-auction of Wadia Realty Pvt Ltd’s 94.71-acre land parcel in Thane to recover dues from the liquidated Go Airlines India Ltd, also known as Go First. The property is valued with a reserve price of ₹1,375 crore, and prospective bidders must deposit an earnest money amounting to ₹68.75 crore, equivalent to 5% of the reserve price, according to a July 21 auction notice from the bank.
The state-owned Central Bank is acting as the authorised officer for the sale, which is part of lenders’ efforts to recover outstanding dues from Go First, a now-defunct airline under liquidation. The auction follows the airline’s insolvency proceedings, where lenders have sought to recover their dues by liquidating assets linked to the airline’s promoters, including Wadia Realty’s land holdings in Thane, as detailed in the auction notice on livemint.com.
This move highlights the ongoing challenges lenders face in recovering dues from failed aviation ventures in India, where insolvency and liquidation processes have become common for struggling airlines. The auction of Wadia Realty’s land parcel is among several efforts by banks to recoup losses, reflecting the broader trend of asset sales in the aviation sector to resolve non-performing loans. The ₹1,375 crore reserve price underscores the significant value of real estate assets tied to aviation promoters.
The auction is scheduled to proceed with the earnest money deposit deadline and bidding process as outlined in the Central Bank’s notice. The ₹68.75 crore deposit requirement sets a high entry barrier for bidders, indicating the bank’s intent to attract serious buyers to maximize recovery from the Go First dues linked to Wadia Realty’s Thane land.