 "Auction a failure? No takers for Juhu's sea-facing Tulip Hotel")
Mumbai’s sea facing six-acre Tulip Hotel in Juhu has found no takers after it was put on the block last month.The Asset Reconstruction Company (India) Ltd (Arcil), which invited bids from prospective clients in December 2013, had set a reserve price of Rs 1,315 crore and the auction was supposed to be held on Wednesday.
According to a CNBC-TV18 report, Arcil sold six bid documents butreceivedno response, following which the auction date will either be extended or the property will be sold privately. According to the report, interested properties are in the process ofnegotiatinga sale value and the final price could be way lower than the reserve price at Rs 700-725 crore.
[caption id=“attachment_1331319” align=“alignleft” width=“380”]  Tulip Star Hotel in Juhu[/caption]
The sale will include the land, buildings and structures, machinery, plant, fixture and fittings on “as is where is and as is what” basis.
Tulip Star Hotel was acquired by Ajit Kerkar and the Tulip Group from Air India’s subsidiary, Hotel Corporation of India, during the privatisation exercise undertaken by the BJP-led NDA government in 2002. But a CBI inquiry was launched in this regard following allegations of corruption in the sale process. The investigating agency did not find anything amiss and finally closed the case in 2008. Immediately after takeover, the Juhu Centaur was renamed the Tulip Star.
It wound up three restaurants and brought down the classification from five-star deluxe to three star. The Kerkar family is also the promoters of Mumbai-based tour operator Cox & Kings.
Impact Shorts
More ShortsIn early December 2013, the Bombay high court restrained Tulip from creating any third-party rights on 2.5 lakh sq ft of the hotel or change its facade. Financial woes had forced Tulip to form a joint venture with Mumbai-based Nirmal Lifestyle to turn the 2.5 lakh sq ft into a retail space.
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