Underworld don Dawood Ibrahim's three-storeyed Masulla Building aka Amina Mansion at Pakmodia Street, Bhendi Bazaar in South Mumbai, was bought by the Saifee Burhani Upliftment Trust (SBUT) for Rs 3.5 crore at an auction held on Thursday.
The Akhil Bharatiya Mahasabha and Delhi-based lawyer Bhupendra Bharadwa were the other two bidders for Amina Mansion (named after Dawood's mother Amina Bi).
According to media reports, although Bharadwaj was the highest bidder (with Rs 1.91 crore) in the public auction, he did not participate in the sealed tenders process which led to SBUT winning the deal. The Mahasabha, led by its head Indira Tiwari, pulled out of the final bidding process as it couldn't accumulate the initial deposit of Rs 25 lakh.
"I had bid Rs 1,91,43,000 and had won the public auction. I did not participate in the e-bidding, where the SBUT made a higher bid," Bharadwaj told PTI.
The auction was carried out under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA). The reserve price for the property was fixed at Rs 79.43 lakh and all bidders had to submit an earnest money deposit (EMD) of Rs 25 lakh by August 6 to participate.
A three-stage process was involved in the auction of the property - public auction, e-bidding and opening of sealed tenders.
Asked about the auction, the SBUT spokesperson said, "The 'Masulla' building has been declared unfit for living and poses serious risk to the lives of tenants and pedestrians. Therefore, we participated in the auction and acquired the building to redevelop it as a part of our ongoing Bhendi Bazaar redevelopment project."
The project envisages redevelopment of approximately 250 existing buildings and 1,250 shops in the congested but upscale Bhendi Bazar area.
Last year, the SBUT, a Bohra trust, had won the bids with the highest price of Rs 11.50 crore for three other properties that belonged to Dawood's family. SBUT now owns four properties, all located in Bhendi Bazaar area: Shabnam Guest House, six flats in the Damarwala building, Hotel Raunaq Afroz and the Masulla building.
Ibrahim, designated by US authorities as a global terrorist, is a key accused in the 1993 serial bomb blasts in Mumbai.
(With inputs from PTI)