Siddhant Co. withdraws from the purchase of Hotel Vedant

Lokmat News Network

Chhatrapati Sambhajinagar:

As per the court's order, the district administration conducted the auction of Vedant Hotel, located on Railway Station Road, on May 20. In the auction process, Siddhant Material Procurement and Supplies (SMPS) emerged as the highest bidder, acquiring Dhanada Corporation's properties for Rs 64.83 crore. However, on Monday, Guardian Minister Sanjay Shirsat — who is associated with SMPS — publicly announced that the company is withdrawing from the auction.

Shirsat also challenged the opposition leaders who had accused him, urging them to buy the property instead. Currently, a hotel named “VITS” operates at the site. Shiv Sena (Thackeray faction) leader MP Sanjay Raut and Leader of the Opposition Ambadas Danve had heavily criticised the Guardian Minister regarding the deal.

Three entities — SMPS, Nirmal Holiday Home, and Kalyan Toll Infrastructure Ltd — participated in the auction. SMPS offered Rs 15 lakh above the base price for each of the two properties. The properties were to be auctioned for Rs 47.56 crore and Rs 17.82 crore respectively, totaling Rs 64.83 crore.

The company was required to pay 25 percent of the bid amount within a month and the remaining amount within three months. The property would be officially registered in the company's name only after full payment. However, before depositing the auction amount in court, SMPS withdrew from the deal.

Now I’ll set up a Vada Pao stall for my son

“They accused me of buying property cheaply and managing things. They said the property is worth Rs 110 crore. Then why don’t they buy it? I’m giving the opposition the opportunity. It’s easy to point fingers. Making baseless allegations has become a business of touts. The entire process was carried out under court orders. The opposition conspired for brokerage they would have received through an agency. Now, I’ll just set up a Vada Pao stall for my son,” said Sanjay Shirsat.

The Journey of Vedant...

In 1997, a person named Ramesh Havele founded Dhanada Corporation, an investment firm. After 2012, the company stopped repaying investors. In 2016, disputes with investors escalated to the Supreme Court via the High Court. In 2018, the Supreme Court ordered the auction of the hotel on Railway Station Road and the adjacent open land to repay Rs 40 crore to investors.

Following the court order, the district administration initiated the auction process for the hotel and surrounding land. Industrialist Abasaheb Deshpande, who had originally conceptualised the hotel, said that the hotel initially ran well but later had to be auctioned due to financial difficulties.

Fresh Auction to Be Conducted Again...

Dr. Vyankat Rathod, Sub-Divisional Officer said, “ The auction value for the prime-location hotel on Railway Station Road was set at Rs 64.53 crore. The court had provided guidelines for how the auction should be conducted. This was the seventh attempt to auction the property. However, due to the withdrawal, the court has ordered that a fresh auction process be conducted again. The Rs 20 lakh EMD (Earnest Money Deposit) submitted in the seventh auction will now be forfeited.”