9 hours ago
Shirsat's son backs out of hotel purchase after failing to deposit money
Chhatrapati Sambhajinagar: Siddhant Shirsat, son of social justice minister Sanjay Shirsat, has backed out of a hotel purchase deal after a political controversy erupted over the alleged undervalued purchase, by not depositing the required 25% bid amount.
Siddhant Material Procurement and Supplies, linked to Sanjay Shirsat's son, was the highest bidder for two prime properties of defunct Dhanada Corporation in a court-monitored auction. However, the company backed out, stalling the sale process, which aimed to recover dues for investors alleging financial fraud. A fresh hearing is set for July 5.
The auction triggered a political backlash, with Shiv Sena (UBT) Rajya Sabha member Sanjay Raut alleging that a property with a ready reckoner value of over Rs 100 crore, and a much higher market value, was being offloaded for just Rs 64 crore.
Legislative council's leader of opposition Ambadas Danve also targeted Sanjay Shirsat for carrying out such suspicious deals, by taking undue advantage of being in power. Following mounting criticism, minister Shirsat announced on June 2 that his son would withdraw from the deal to avoid further political controversy.
Despite winning the auction by quoting Rs 15 lakh above the base price for each property, Siddhant Material Procurement and Supplies failed to deposit the required 25% of the amount by the June 20 deadline.
by Taboola
by Taboola
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As per rules, the failure to deposit the amount within the stipulated time nullified the bid.
Sub-divisional officer Vyankat Rathod confirmed that the matter was reported to the special court, and further steps would be taken as per its directives. "The next phase of the auction process will depend on the court's decision," Rathod said.
With the top bidder out, the second-highest bidder, Nirmal Holiday Home, has expressed its willingness to match the required amount. The third bidder, Kalyan Toll Infrastructure Ltd, has also shown readiness to increase its bid by Rs 5 lakh.
The auction process underwent seven rounds and involved three bidders. The district administration carried out the sale on court orders, after multiple complaints of investor fraud were filed against Dhanada Corporation.
