Three south Mumbai properties belonging to fugitive gangster Dawood Ibrahim, which are in a dilapidated condition, were auctioned for Rs. 11.58 crore on Tuesday, according to an official involved in the exercise.
The Saifee Burhani Upliftment Trust (SBUT) had bought them for its redevelopment project.
The properties — Hotel Raunaq Afroz, also known as Delhi Zaika, Shabnam Guest House and six rooms in Damarwala building — were put on the block by the Ministry of Finance, under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, also known as SAFEMA.
Highest bid Rs. 4.53 crore
The SBUT’s highest bid for Raunaq Afroz hotel was Rs. 4.53 crore, for Shabnam Guest House Rs. 3.52 crore and the six rooms in the Damarwala building Rs. 3.53 crore.
These properties were seized under the SAFEMA almost 15 years ago.
“The properties are in a very dilapidated condition and are unsafe to live in. So it was necessary to complete the auction process as soon as possible to ensure safety of the tenants residing there,” Competent Authority of Mumbai SAFEMA, P. Selvaganesh, told PTI.
One of the auctioned properties is located very close to the five-storey building in Bhendi Bazaar that collapsed in early September, killing 33 people. The SAFEMA, in consultation with the district valuation officer of the Income-Tax department, had fixed the reserve price at Rs. 1.21 crore, Rs. 1.55 crore, and Rs. 1.18 crore for the Shabnam Guest House, the rooms in Damarwala Building and Hotel Raunaq Afroz, respectively.
After Dawood Ibrahim fled, properties belonging to him and his associates were seized under the provisions of SAFEMA.
Sources said about 12 bidders took part in the process which started at 10 a.m. and concluded at 12 noon.
