Maharashtra Chief Minister Devendra Fadnavis Orders Inquiry into Hotel Auction Deal Amid Controversy

Maharashtra Chief Minister Devendra Fadnavis has initiated a high-level investigation into potential irregularities in the auction process of a hotel in Chhatrapati Sambhajinagar. This decision follows allegations against Shiv Sena MLA and state minister Sanjay Shirsat, whose son's company was among the bidders. The issue was highlighted by Ambadas Danve, the opposition leader in the legislative council.

The VITS Hotel, owned by Dhanda Corporation and listed on the Bombay Stock Exchange, was seized under the Maharashtra Protection of Interest of Depositors in Financial Establishments Act, 1999. The court ordered its auction, which was conducted by the Chhatrapati Sambhajinagar collectorate. According to a government valuer's report from December 2018, the hotel's value was Rs 75.92 crore. However, private valuers now estimate it at Rs 150 crore.

Allegations of Irregularities and Cartelisation

Danve alleged a lack of transparency in the auction process. He pointed out that three companies participated, including M/s Siddhant Material Procurement and Suppliers Company, linked to Sanjay Shirsat's son Siddhant. Danve claimed this company applied for registration in 2024 but remains unregistered. He also accused the tendering process of cartelisation.

M/s Siddhant Material Procurement and Suppliers Company bid Rs 47 crore for the hotel. The other two bids were Rs 46.95 crore and Rs 46.90 crore, differing by only Rs 5 lakh each. Danve called this a fraud, claiming it defrauds the government significantly. He questioned what action would be taken against officials allowing such irregularities.

Government Response and Future Steps

Revenue Minister Chandrashekhar Bawankule announced that the entire process has been cancelled, and new tenders will be issued to ensure transparency. He stated that tenders had been floated six times previously without any bids, leading to reduced base prices and conditions over time.

In response to criticism, Shirsat mentioned that he had advised his son Siddhant to withdraw from bidding for the hotel last month. He reiterated that the tendering process adhered to court orders and had been attempted multiple times without success.

Fadnavis assured that a thorough inquiry would be conducted to identify any irregularities in this case. The aim is to maintain transparency throughout the process as new tenders are prepared based on merit.

With inputs from PTI