Tobacco firm to auction 5.5-acre Marol plot | mumbai | Hindustan Times
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Tobacco firm to auction 5.5-acre Marol plot

mumbai Updated: Aug 31, 2010 01:24 IST

One of the prime properties at Marol in Andheri, owned by Golden Tobacco Limited (GTL), has been put on the block for sale.

The company will conduct an auction for its 5.5 acre plot on Tuesday.

The reserve price for the plot has been fixed at Rs 50 crore by the company and they have taken a deposit of Rs 5 crore from each bidder. Market sources said the price of the plot could go up to Rs 100 crore.

However, the it will not be easy for the new owner of this 5.5-acre plot because construction major Housing Development and Infrastructure Limited (HDIL), which was originally supposed to get the land, has warned of legal action against the deal.

In a public notice issued last week, HDIL said that anyone buying the property will have to do so at their own risk.

But V. K. Singhal, compliance officer, GTL said the auction is on. “We will hold the auction as per schedule,” said Singhal.

The scarcity of land has caused the land rates in the city to rise phenomenally in the last few years.

Recently, the 18-acre Borosil land at Marol was sold at Rs 830 crore, while the Sheth Group purchased the 14-acre Golden Tobacco Company land at Rs 591 crore.

Another major deal was the sale of 18-acre plot of Hindustan Composites at Ghatkopar for Rs 571 crore.

In February, a Memorandum of Understanding (MoU) was signed between GTL and HDIL for a sum of Rs 70 crore.

Of this, HDIL paid Rs 5 crore and was supposed to pay Rs 30 crore by May.

In between, the Income Tax department advised HDIL not to make any further payment, because there was a large amount of arrears to be recovered from GTL.

Having failed to get the amount of Rs 30 crore, GTL cancelled the MoU and have now moved to start this auction. Even the IT department is said to have objected to the auction and have issued public notices against the move.