Auction closes for 1.28 lakh sq mt Mumbai commercial complex; Canara Bank seeks to recover Rs 385 cr

State-run lender Canara Bank has received bids for sale of Supreme Business Park — a 1.28 lakh sq meter commercial property with a built-up area of over 6.9 lakh sq feet in Powai, Mumbai. Canara Bank put the property up for auction under SARFAESI, seeking to recover Rs 385 crore after the loan to the property developer Supreme Housing and Hospitality Pvt Ltd turned bad. The reserve price for Supreme Business Park is kept at Rs 1,370 crore. The excess amount recovered will be given back to the borrower — Supreme Housing, an official told Financial Express Online. The bids will be opened on 30 March 2021.

Supreme Housing and Hospitality took a loan from Canara Bank in 2016, which later turned into NPA (non-performing asset). Under Sarfaesi Act, the bank can recover its dues by selling the securities. Canara Bank has applied for the physical possession of the entire property. The last date for the bid application submission was March 25, 2021. However, if the auction doesn’t go through for any reason this time, then it would reopen for bids. The E-auction agency is C1 India, and the prospective bidders could participate in the bidding process from anywhere. According to the e-auction notice seen by Financial Express Online, the commercial property has two towers A and B. The building number 2 known as ‘Supreme Business Park’ consists of two wings, A and B. These wings have 4 stilts and 7 upper IT floors. The size of the mortgaged asset is 1.28 lakh sq meters, and it is owned by Bhawani Shankar Sharma.

Earlier this week, Canara Bank had announced to organise an auction of 2,000 borrower properties on March 26, 2021. The properties include residential flats, apartments, independent houses, industrial lands, commercial complexes, office spaces and vacant lands. These will be sold under the provisions of the Sarfaesi Act, PTI quoted an official statement. According to the statement, so far in the current financial year, Canara Bank has sold 1,450 properties valued at Rs 886 crore. The properties put up for auction are spread across Delhi, Mumbai, Kolkata, Bengaluru, Chennai, and also other semi-urban pockets.