Mumbai: Amid mounting allegations of irregularities in the auction of the VITS Hotel in Chhatrapati Sambhaji Nagar, Maharashtra’s Minister of Social Justice, Sanjay Shirsat, has publicly announced that he has asked his son to withdraw from the bidding process.
The controversy erupted after Ambadas Danve, Leader of the Opposition in the Maharashtra Legislative Council, accused the sale of the hotel at a price below its market value to benefit Minister Shirsat. According to Danve, the hotel’s ready reckoner value is Rs 110 crore, with the actual market value potentially much higher.
Danve alleged that the auction was structured to favour Shirsat’s family. He questioned the legality of selling a high-value property for just Rs 58 crore, a figure far lower than the claimed valuation. Echoing these concerns, Shiv Sena (UBT) MP Sanjay Raut claimed the hotel was worth over Rs 100 crore and raised serious questions about the source of the funds and the intent behind the undervalued deal.
In response, Shirsat held a press conference where he clarified, “Over the past ten days, there has been speculation about my son purchasing a hotel in Sambhaji Nagar. The case is in court. The auction process was conducted seven times earlier, but no one came forward to buy. On the eighth attempt, my son and his friend submitted a tender and paid the required amount.”
He added, “People are making foolish statements without knowing the facts. The transaction, if completed, would be entirely transparent. The claims of the hotel being worth Rs 100 crore are misleading. We were prepared to buy it for Rs 68 crore. But today, I have told my son to step back. If it’s really worth that much, let others pay Rs 90 or Rs 100 crore. They will benefit.”
Shirsat challenged his critics to participate in the upcoming re-tendering process and accused political rivals of stalling the business prospects of young entrepreneurs. “My son will withdraw from the tender process tomorrow. You’ve sabotaged a Marathi youth trying to stand on his own feet. If you go personal, I will be forced to do the same. I know everything about you,” he warned, addressing Sanjay Raut directly.
However, the withdrawal could come at a financial cost. According to auction rules, participants were required to pay 25% of the amount within a month of the auction and the remaining 75% within three months. If the bidder fails to complete the payment, the earnest money deposit may be forfeited. Shirsat acknowledged that backing out could lead to a Rs 20 lakh loss.
Meanwhile, Danve fired back, demanding that Shirsat reveal the names of his son's business partners and provide transparency about the company’s registration involved in the bidding. He also alleged, without offering specifics, that procedural rules were manipulated in favour of the deal.
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