Ruia's realty jackpot: House bought for under Rs 50 lakh may fetch Rs 170 cr

The Essar Group’s Ruia family has landed a rather sweet deal. No, not in the oil and gas business, but in real estate, that too residential.

The family is selling a 1,250 sq yard bungalow, with 12,000 sq ft of built-up space, in the leafy Jor Bagh area of central Delhi and is expecting Rs 170 crore for the house that it bought for under Rs 50 lakh about 20 years ago, an Economic Times report said today .

Jor Bagh is one of Delhi’s most expensive residential areas and property prices shoot up here by a standard 15 to 20 percent a year, irrespective of the economic slowdown. Reason? It is not only one of the most expensive pin codes but also the most exclusive. It isa place which has been the quiet domain of Delhi’s uber-rich and, in recent times, has seen an influx of expatriates and NRIs making their way back home.

The same family had purchased a sprawling 2.26 acre property in Delhi’s most sought after pin code- Lutyens’ Bungalow Zone- for Rs 91.7 crore in 2006. While this property is used as a residence by the Ruias, the upmarket Jor Bagh bungalow was being used as a guesthouse.

Apart from residential, Essar has set up a plush office on one entire floor of nearly 7,000 square feet in Prakash Deep building at the Barakhamba Road in New Delhi and also has a project office at Noida.

ET reported that the sale of the bungalow is a personal investment. However, the sale comes at a time when the company is struggling with massive debt ofRs 98,412 crore.