Auction cancelled as official liquidator’s office had failed to complete the formalities.
The state high court was not able to auction properties belonging to the Calico Mills as the case was not displayed on the board. The official liquidator's office had failed to complete the formalities and put the bids before the court in short notice.
Apart from this, none of the real estate players showed much interest in bidding for the two biggest chunks of land on Friday.
The high court had postponed the auction of Ahmedabad Manufacturing and Calico Printing Mills - popularly known as Calico Mills. The auction was carried out by the official liquidator on April 24, 2010 who then issued fresh auction with higher upset value of all the lots on sale.
Of the seven lots, the first and biggest lot which included 2.39 lakh sq mtr of land on the Calico Mills premises, failed to attract any bidder, said the sources. The upset value of the lot was fixed at Rs386 crore, compared to last previous Rs203.46 crore. In absence of aggressive bidding, the plot was sold for Rs211 crore to Mumbai's Ajmera Group and Ahmedabad's Bakeri Realty in April 2010.
Another lot, which included sale of Calico's 33,381 sq mtr of land at Saranagar in Ahmedabad, attracted the highest interest from the bidders last time. The upset price of the lot was fixed at Rs18.41 crore but it witnessed aggressive bidding and was purchased by JB Organisation for Rs48 crore. Interestingly, none of the bidders have turned up for this plot yet, said sources. The upset value for the plot was fixed at Rs56.92 crore.
Yasin Mendajiwala of Khushnuma Buildcon, who was present in the court, said, he was interested in the bid but found the upset value too high. "The upset values of both the plots are too high considering the liabilities, encroachments and other issues," he said.
AK Chaturvedi, official liquidator, denied to comment on the number of bids received for seven lots belonging to Calico Mills.
The sealed bids received by the official liquidator were supposed to be opened before Justice DA Mehta and bidding was to be carried out there after. However, the judge denied taking the case on the board citing reasons such as OL's office not completing the required formalities in time and not putting the case before him in short notice.
"I can not take case at such a short notice," he said. The judge asked to complete the formalities and fixed the hearing on December 3, 2010. As per the sources, had the official liquidator completed the formalities on time, there would not have been any issue.
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