Lokmat News Network
Chhatrapati Sambhajinagar:
The district administration has initiated the auction process for the VITS Hotel on Railway Station Road in the city for the seventh time. However, the process now risks getting entangled in allegations of financial irregularities. Citing concerns over the valuation set for the auction, Leader of the Opposition MLC Ambadas Danve wrote a letter to Chief Minister Devendra Fadnavis on Wednesday, demanding an investigation.
In his letter, Danve has alleged serious administrative misconduct. The hotel property belongs to a major shareholder company based in Mumbai, which has been operating the property since 2008. However, some shareholders of the company have allegedly exerted pressure on the administrative machinery to initiate auction proceedings under the MPID Act (Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act).
The hotel has been shut down for the past two months without any official permission, creating a crisis of unemployment for approximately 150 workers, whose salaries have also been withheld. Danve stated that this is a highly serious matter and called for an investigation into the machinery involved in the auction process. He urged the Chief Minister to investigate the administrative dealings and take action against those responsible and at fault.
Responsibility of the auction?
Since 2018, the auction proceedings for the hotel have been underway under the MPID Act. According to this law, the responsibility of auctioning seized properties is assigned by the government to the Sub-Divisional Officer (SDO) of the concerned jurisdiction. So far, the SDO’s office has issued auction notices for the VITS Hotel seven times.
Auction price set at Rs 64.53 crore
The SDO Dr Vyanket Rathod said, “The auction price for the hotel on Railway Station Road has been set at Rs 64.53 crore. The court has guided how the auction should be conducted. A request to reduce the price by 10% was also not accepted by the court. The auction of the property is scheduled for May 20. There is no illegality involved in the process. A private valuation agency had earlier estimated the property's value at Rs 85 crore.”
Some city leaders are eyeing the property
There is speculation that certain city leaders are interested in purchasing the VITS Hotel. These leaders are reportedly affiliated with the ruling party, and it is being said in political circles that the auction process is being expedited due to their influence. On the other hand, some leaders are opposed to this, hence through the opposition party, they are raising objections and voicing against the auction.