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NTC asks bidder to reconsider Finlay offer

The panel had rejected Lodha’s bid, as they felt they would get a better price if bids were re-invited with the real estate market witnessing a revival.

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The asset committee of the National Textile Corporation (NTC) has recently asked the Lodha group to reconsider their decision to reject the group’s offer of Rs710 crore to purchase Finlay mill.

The panel had rejected Lodha’s bid, as they felt they would get a better price if bids were re-invited with the real estate market witnessing a revival. The bid was turned down despite the developer increasing its offer from Rs658 crore to Rs710 crore, the reserve price fixed by the NTC.

Three weeks ago, Lodha group had emerged the highest bidder with Rs658 crore for the 10.5 acre defunct mill which was auctioned by NTC. But as the bid was less than the reserve price, Lodha’s offer was not ratified by the asset committee of the NTC.

Abhishek Lodha, director of Lodha group who is awaiting NTC’s decision, has not ruled out taking legal recourse if the NTC declines their offer. Property experts though are sceptical. They said that last year DB Realty too had moved the court when NTC too had rejected their bid though they emerged as the highest bidder for Finlay mill with over Rs450 crore.

The high court had ruled in NTC’s favour on the grounds that as per tender conditions, NTC was within its rights to accept or reject the offer it received.
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