M.S. Mukesh, the father of Indian auto auctioneer Mukesh Mahavirs, will win a bid for the sale of a Mumbai hotel by bidding for it for Rs 1.5 lakh.
The auction will be held on Monday.
The bid comes after the sale in the United States of the property at 16,000 sq ft, built in the 1920s, for $3.7 million in 2014.
The Mahavira family owns a stake in the hotel.
The family has a history of taking big losses in the industry and the auction is likely to be another big loss.
The bid price includes the value of the building itself and a portion of the profits earned by the company that owns the property, which is worth more than Rs 1 lakh crore.
Mahaviris’ company, Mukesh India, will receive a premium of 5 percent on the sale price, which will also go towards the purchase of land to build the hotel, the Mumbai Mirror reported.
The Mahaviri family had sold the land to a consortium for the building of the hotel in 2007, but the hotel has not been built.
It was the MahavIRs that were involved in the negotiations and in 2014, the consortium won the bidding for the hotel at the Indian Automobile Auction held at the National Museum of Fine Arts.
The family had earlier won a bid from the US for the purchase by Indian Automotive Auctioneers of the 16,700 sq ft hotel, worth about $2.7 billion.
The sale in 2013 by US auction house Sotheby’s of the 17,400 sq ft building in New York had raised $1.5 billion for the Mahavi family.
The US government has already paid over $100 million in the deal, and the Mahabirs will receive the cash in return.
The new bid is a big win for Mahavirin, who has had a poor run of years.
The group has been struggling to make ends meet with loans of about Rs 15,000 crore that the government had extended to them, as well as the loan from the Indian government that they were required to repay in 2016.
The loan is now over Rs 1 trillion.
The company’s debt, which has ballooned in recent years, has also grown by around $500 million.