The Central Bank of India has begun the process of auctioning a significant 94.71-acre land parcel owned by Wadia Realty Pvt Ltd in Thane, as part of efforts to recover debts owed by the now-defunct Go Airlines India Ltd, commonly known as Go First. The airline, which is currently undergoing liquidation, has left behind a considerable financial obligation amounting to ₹3,918.54 crore, including principal and interest due as of August 31, 2023. This action comes as the bank, acting on behalf of a consortium of lenders which includes Bank of Baroda and IDBI Bank, intensifies its recovery efforts following the airline's insolvency proceedings initiated in May 2023.
The auction is scheduled for August 20, under the provisions of the SARFAESI Act, with a reserve price set at ₹1,375 crore. Potential bidders are required to submit an earnest money deposit of ₹68.75 crore, representing 5% of the reserve price. The bidding process is structured to allow increases in multiples of ₹1 crore, and the online auction will take place from 10 am to 6 pm. Interested parties must ensure their earnest money deposit is submitted by 5 pm on the same day. The land, located at Village Ovale, Bhayanderpada along Ghodbunder Road in Thane, is positioned adjacent to a 60-meter wide road, enhancing its accessibility and development potential.
According to the auction notice, Wadia Realty Pvt Ltd serves as the corporate guarantor and mortgagor for Go First, which filed for bankruptcy primarily due to operational challenges, including delays in securing aircraft engines from Pratt & Whitney. The airline's financial difficulties were compounded by a Delhi High Court ruling that significantly impacted its ability to recover. As the auction process unfolds, the bank has emphasized that prospective bidders should conduct their due diligence regarding the property’s encumbrances, title, and any existing claims or rights prior to submitting their bids. The terms also clarify that the secured creditors will not be responsible for acquiring any necessary permits or licenses related to the property.
A property inspection is scheduled for August 13, 2026, from 12 pm to 4 pm, allowing interested bidders the opportunity to assess the land before the auction. The outcome of this auction will not only influence the recovery of dues for the lenders involved but also potentially reshape the real estate landscape in Thane, an area already marked by considerable development activity. The ongoing liquidation of Go First, which previously held a 6.9% market share in India's aviation sector, underscores the challenges facing the airline industry and the broader implications for stakeholders involved, including creditors and property owners in the region.