A consortium of lenders has put a land parcel owned by Wadia Realty up for auction to recover debts from Go First airline.
The sale marks a significant effort by financial institutions to recoup massive losses following the collapse of the now-defunct carrier. It highlights the ongoing struggle for creditors to recover assets from the Wadia Group's holdings.
The lenders, led by the Central Bank of India and joined by Bank of Baroda and IDBI Bank, are targeting a land parcel located at Bhayanderpada on Ghodbunder Road in Thane, Maharashtra [1]. The property is estimated to be between 94.7 [2] and 95 acres [1] in size.
According to the lenders, the auction is intended to recover more than ₹3,918 crore in outstanding loans extended to the airline [1]. The reserve price for the auction of the Thane plot has been set at ₹1,375 crore [1].
Go First entered insolvency proceedings after facing severe financial distress, leaving a trail of unpaid dues to various banks and suppliers. The move to liquidate real estate assets held by Wadia Realty suggests that the lenders are pursuing all available avenues to offset the debt.
The auction process is part of a broader recovery strategy by the Central Bank of India and its partners to mitigate the impact of the airline's failure on their balance sheets. The land in Thane represents one of the primary assets being leveraged to satisfy the creditors' claims [1].
“Banks are auctioning Wadia Realty’s land to recover more than ₹3,918 crore in outstanding loans.”
The auction of high-value real estate to cover airline debt underscores the systemic risk associated with concentrated corporate guarantees. By targeting Wadia Realty's land, lenders are attempting to bridge a significant gap between the airline's liquidated assets and its total liabilities, reflecting the difficulty of recovering funds from defunct aviation entities.
