Just 2 initial bidders for Sahara’s Rs 37,392 cr Aamby Valley auction

Only two potential bidders are believed to have shown initial interest for embattled Sahara group’s super luxurious Aamby Valley resort town, which has been put up for a Supreme Court ordered auction by the official liquidator at a reserve price of Rs 37,392 crore. While there is no official word as yet on the identity of the potential bidders as the entire exercise is being carried out under strict observation of the apex court and the observers appointed by it, officials privy to the information said just two interested parties have turned up and have submitted their KYC details as required for the initial steps of the auction process. They refused to be identified and also declined to disclose the names of the potential bidders as the process has just got underway and involve strict confidentiality requirements, but said the two parties appear to be representatives of two separate consortiums of investors and corporates. Multiple real estate consultants also argued that it would be almost impossible for any single real estate player in India to buy such a huge property, a hill resort town in Maharashtra where a number of high profile celebrities are said to have invested, as the sector is going through a severe cash crunch and it is difficult for them to even arrange loans from banks. As per the approved schedule, the prospective bidders were to submit their KYC documents by September 9, during which two sets of papers are believed to have been filed. The qualified intending bidders can access property related information and undertake physical inspection of the assets to be auctioned till September 20. Thereafter, bids would be submitted in sealed cover with 15 per cent earnest money deposit with the official liquidator till October 3. The auction has been scheduled for October 10-11, while the top three highest bidders would be initiated by email by October 17. The successful bidder would need to deposit 50 per cent of the bid amount by November 17 and further 25 per cent by December 16 and then the final 25 per cent by January 16. If the successful bidder fails to make the payment, the property would be offered to the next highest bidder with a similar payment structure spread over three months. The properties on auction include an integrated hill city township spread over 6,761.642 acres in the great Sahyadri mountain range, 1,409.865 acres of land surrounding Aamby Valley City Development and land measuring 321.656 acres within the Satara district. The liquidator said the properties are being sold under two distinct phases over a period of two days, as an alternate to each other, “given the quantum of the properties to be sold”.