Lenders, led by Central Bank of India, have put Wadia Realty Pvt Ltd's nearly 95-acre land parcel in Thane up for auction with a reserve price of Rs 1,375 crore. This action aims to recover over Rs 3,918 crore in dues from the now-defunct Go First airline. The property, which was mortgaged as security for the airline's borrowings, will be auctioned on August 20 under the SARFAESI Act.
Key Details
The auction reflects ongoing efforts by creditors to recover funds from Go First, which suspended operations in May 2023. The airline's financial difficulties have left it unable to meet its obligations, prompting lenders to take this step. The auction process is part of a broader strategy to address the financial fallout from the airline's collapse.
Background
According to the lenders, the proceeds from the sale of the Thane land will be used to offset the airline's outstanding debts. The decision to auction the property comes as part of a series of measures taken by banks to recover dues from various defunct companies in the aviation sector.
The auction of Wadia Realty's land is likely to affect the real estate sector in Thane, particularly as it relates to commercial properties. The outcome may influence investor sentiment and pricing in the region, especially for similar properties that could be impacted by the financial struggles of the airline sector.
Investors will watch for the results of the auction on August 20, which could set a precedent for future recoveries in the aviation industry.