SBUT picks up three Dawood properties for ₹11.06 crore

Hotel Ronak Afroz, Shabnam Guest House and six rooms in Damarwala building attract three times the reserve price at second auction in two years

Mumbai 14/11/2017: Shabnam Guest house at Yakub Street, one of the three Dawood Ibrahim property auctioned today.
 Photo: Emmanual Yogini

Three properties, said to belong to Dawood Ibrahim Kaskar, a designated global terrorist and prime accused in the 1993 Mumbai blasts, were sold to the Saifee Burhani Upliftment Trust (SBUT) on Tuesday in an auction organised by the Union Finance Ministry. The auction was held under the norms mandated by the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA).

The SBUT paid ₹4.53 crore for Hotel Ronak Afroz, also known as Delhi Zaika, ₹3 crore for Shabnam Guest House and ₹3.53 crore for six rooms in Damarwala building in the auction held at the Indian Merchants’ Chamber. The properties are located where SBUT is executing a major cluster redevelopment project. The total reserve price was pegged at ₹3.95 crore, and SBUT paid nearly three times at ₹11.06 crore.

Mumbai 14/11/2017: Ronak Afroz shop at Pakmodia Street, one of the three Dawood Ibrahim property auctioned today. Photo: Emmanual Yogini

 

This is the second auction in two years of the properties, attached by the Union government after the 1993 Mumbai blasts that claimed more than 250 lives and injured over 700. An SBUT spokesperson said, “These buildings are dilapidated. We acquired these properties to ensure safety of the families living in them, and to continue with the redevelopment project.”

A senior Central Revenue Intelligence officer, who declined to be named, said the earlier bids failed due to vested interests. Such auctions to sell tainted assets face challenges, he said, including risk of reprisal by the underworld to the buyer. Also, problems with the title deed are not resolved by the government body.

Sold: (from top) Raunaq Afroz restaurant, now called Delhi Zaika, Shabnam Guesthouse and Damarwala Building

 

To thwart efforts to subvert the auction process, the government had increased the quantum of caution money to be deposited by nearly six times to ₹1 lakh for the three properties, with a threat of forfeiture if bidders were found to be trying to derail the auction process.

SBUT spokesperson Shabeer Morbiwala could not be reached for comments. Another SBUT representative said, “The properties fall within the redevelopment site. They are located in the space designated as the entrance to the township.”