Mumbai: The bank has made two previous attempts to auction the 41,000-square-foot built-up asset, which is expected to raise Rs 240 crore after the auction.

Tire maker Dunlop India had earlier redeveloped a prime site on an acre of land on Annie Besant Road at the top end of Worli in Mumbai, two people familiar with the matter said. ICICI Bank, which acquired Dunlop House after the Ruia 51.9 group defaulted on loans worth Rs 100 crore, has twice tried to auction the assets to recover the debt.

In the second attempt to sell the property earlier this year, the bank purchased the property for Rs 100 million at 20% above the reserve price.

The Ruia Group, led by Pawan Kumar Ruia, acquired Dunlop India from the Chhabria family in 2005. the landmark building has a total area of 41,000 million sq ft and is currently without tenants. The bank is currently planning to raise Rs 24,000 crore by selling the property. At the time of going to press, an ICICI-ICIC. An email query sent by the bank is yet to receive a response. Currently, residential properties in the area are priced at Rs 45,000 ft per sq ft to Rs 50,000 (based on built-up area). The four-storey building, located near Poddar Hospital and opposite Worli police station, has been listed for sale several times. However, the final transaction has been slow due to pending bank defaults.

When Dunlop India tried to sell the property four years ago, its asking price was Rs 40 1 crore. However, the tire maker could not find a buyer due to the poor market conditions at that time. In the auction announcement released in February this year, the minimum price for the property was Rs 300 crore.

“After acquiring the asset, the bank has paid its dues and now it has resolved any issues that may hinder future growth.” The buyer responded that the bank wanted to sell the property with clear title without the intervention of a real estate consultant. “The person mentioned above is No.”

According to him, the bank acquired the property in 2017. The purpose of the last auction was to sell land with clear title and no legal disputes.

The main site has good potential for development. However, real estate consultants have indicated that the response to the auction will vary greatly based on current real estate market conditions and policy related factors. The current development plans for the area indicate that the total development potential of the land is more than 10,000 sq ft. They added that the potential could increase by more than 30% due to future development plans in Mumbai.

Worli’s last major land deal was completed in 2012 year when real estate developer Lodhaa Group raised Rs. In 2010, Indiabulls Real Estate spent nearly Rs 200 crore on two parcels of land-Bharat Mills and Podar Mills-covering nearly 12 acres in Worli.