7 days ago
Ambadas Danve writes to Fadnavis, seeks scrapping of Chhatrapati Sambhajinagar hotel auction, demands high-level probe
Chhatrapati Sambhajinagar: The opposition continues to challenge social justice minister Sanjay Shirsat, despite his announcement that his son, Sidhant, would withdraw from purchasing a prominent hotel in the city.
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Shirsat, who serves as the district guardian minister, is facing mounting pressure.
Stakeholders have publicly stated that the hotel's current value exceeds Rs 175 crore. Reports indicate that during the auction, the minister's son secured the property with the highest bid of approximately Rs 67 crore.
Ambadas Danve, the leader of the opposition in the Maharashtra legislative council, has written to chief minister
, requesting the immediate nullification of the VITS Hotel property auction in Chhatrapati Sambhajinagar.
He also sought a thorough investigation, citing procedural irregularities and property undervaluation.
In his Monday correspondence to the chief minister, Danve said the revenue administration auctioned Dhanada Corporation Ltd's flagship asset — Hotel VITS — at a significantly reduced value, affecting govt revenue and numerous stakeholders. He noted the Railway Station Road property, valued at ₹110 crore in 2012, received bids below the govt's 2021 reserve price in the 2025 auction.
Danve said the May 20 e-auction, through the eAuction India portal, attracted only three companies. He questioned the limited participation and similar bid amounts, suggesting predetermined outcomes favouring specific interests. "The auction was conducted with clear intent to favour one bidder, under pressure from a specific group of shareholders and possible financial interests of certain officers," he alleged.
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The letter emphasised that Dhanada Corporation, listed on the Bombay Stock Exchange, has over 5,000 shareholders. Hotel VITS, operating since 2008, provided substantial local employment and business opportunities. The property ceased operations on Feb 1, 2025, without judicial orders, despite ongoing business activities and Rs 6 crore annual profit submissions to the court.
Danve referenced the Supreme Court's verbal observation regarding MPID Act's inapplicability to share transactions.
He claimed the state administration proceeded with the auction regardless, without proper judicial guidance.
"The abrupt closure has left nearly 150 direct employees of this hotel, related small businesses, and suppliers in financial distress," Danve wrote. He requested a halt to property transfer, the establishment of an investigative committee, and disciplinary measures against involved officials. The letter concluded with a request for a detailed report on actions taken.
