One of the largest land assets linked to the collapsed Housing Development and Infrastructure Ltd (HDIL) is set to go under the hammer. Unity Small Finance Bank (USFB), which took over the assets of the defunct PMC Bank, has announced the auction of a 429-acre plot in Dahisar West to recover over ₹2,000 crore in dues from HDIL and its promoters, Rakesh and Sarang Wadhawan.

The plot, valued at a reserve price of ₹1,234.62 crore, will be auctioned on November 3, amid ongoing litigations and regulatory clearances required for any future development.

Earlier this month, USFB announced the auction of the plot to recover dues from the stressed developer. It is situated next to Dahisar Crematorium at Anand Park, along the Dahisar river.

Municipal corporation records show that it is mandatory to secure clearances from the ministry of environment and forests as well as the Maharashtra Coastal Zone Management Authority in to develop the plot. In case the developer decides to erect a high-rise, then permission from the Airport Authority of India will also be required due to the plot’s proximity to the Remote Receiving Station across the railway line.

As per the auction document accessed by Hindustan Times, the bank took possession of the land on December 26, 2023. It was mortgaged by Ravijyot Finance and Leasing Private Limited to lend money to HDIL’s Rakesh Wadhawan and Sarang Wadhawan by the erstwhile Punjab & Maharashtra Cooperative Bank (PMC Bank).

The bank is looking at recovering ₹2,059.30 crore from HDIL, Ravijyot Finance and Leasing Private Limited and the Wadhawan father-son duo. The reserve price for the auction has been fixed at ₹1,234.62 crore. The company or individual willing to acquire the land by participating in the auction process will have to pay ₹15 crore in earnest money. On November 3, during the e-auction, bids will be allowed to be made in multiples of ₹2 crore.

The successful bidder will have to deposit 25% of the amount the next working day after the confirmation of the sale. The balance 75% of the sale price will have to be paid within a fortnight, which may be extended up to three months. “The prospective bidders shall be granted access to the documents upon executing a non-disclosure agreement…” the document mentions.

There are multiple ongoing litigations and proceedings concerning this plot, including one under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. One of the litigations is ongoing at the Debt Recovery Tribunal (DRT), filed by the bank to recover an amount of ₹2,173.93 crore. The DRT in its April 2024 order, directed Ravijyot Finance and Leasing Private Limited to not create any third-party rights on this asset.

Even the BMC’s dues are pending. The civic body had initiated land acquisition of around 62,866.41 sq m or 15.53 acres of the total 429 acres of the plot as part of the process to recover the dues.