Maharashtra Chief Minister Devendra Fadnavis has announced a high-level inquiry into the auction process of a hotel in Chhatrapati Sambhajinagar after opposition leaders raised concerns over the involvement of state minister Sanjay Shirsat’s son in the bidding, alleging irregularities and cartelisation in the process. The case, which has drawn sharp political reactions, highlights the challenges of ensuring transparency in public auctions amid political connections and legal complexities.
The controversy began when Ambadas Danve, leader of the opposition in the legislative council, highlighted that the VITS Hotel in Chhatrapati Sambhajinagar, owned by Dhanada Corporation and seized under the Maharashtra Protection of Interest of Depositors Act, was being auctioned at an outdated valuation. According to Danve, while private valuers pegged the hotel’s worth at around Rs 150 crore, the auction was based on a 2018 government valuation of Rs 75.92 crore, raising concerns about a potential undervaluation that could lead to significant losses for the state.
Concerns Over Bidder’s Identity and Process
Danve pointed out that among the three companies participating in the auction was M/s Siddhant Material Procurement and Suppliers Company, allegedly owned by Social Justice Minister Sanjay Shirsat’s son, Siddhant. He claimed that the company was not fully registered, having only applied for registration in 2024, and lacked an income tax return record, raising questions about its eligibility to bid for a property of this scale.
Further, Danve alleged cartelisation in the bidding process, citing the minimal difference between the bids submitted: Siddhant’s company reportedly bid Rs 47 crore, while the other two companies submitted bids of Rs 46.95 crore and Rs 46.90 crore, respectively. He argued that such close bidding patterns indicated possible manipulation to ensure the property was acquired at a price significantly below its current market value.
Government Responds, Orders Fresh Tendering
In response to the allegations, Devendra Fadnavis assured that a high-level inquiry would be conducted to investigate any irregularities in the auction, emphasising the government’s commitment to maintaining transparency. Revenue Minister Chandrashekhar Bawankule informed the council that the auction process had been scrapped and that a new tendering process would be initiated to ensure fairness and adherence to legal protocols.
Bawankule also highlighted that despite the tender for the hotel being floated six times in the past, no bids were received, leading to a gradual reduction in the base price and the relaxation of conditions to attract potential buyers. This, he explained, was done to comply with the court’s orders, under which the auction was being conducted following the seizure of Dhanada Corporation’s assets.
Facing mounting criticism, Sanjay Shirsat clarified that the tender had indeed been floated multiple times without any response and was being executed under court directives. Amid the backlash, Shirsat stated that he had requested his son Siddhant to withdraw from the auction process to avoid further controversy, reflecting the sensitivity surrounding the issue and the political ramifications of such allegations.
The developments underscore the complexities involved in handling auctions of seized assets, particularly when political figures and their families are linked to bidding entities. With the fresh tendering process set to proceed under increased scrutiny, the case has turned into a significant test for the Maharashtra government to demonstrate transparency and accountability while navigating the intersection of governance, legal mandates, and public trust.
