Bidder raises concern over delays, transparency issues in IL&FS auction
ECONOMY & POLICY

Bidder raises concern over delays, transparency issues in IL&FS auction

Realty developer Nila Spaces, one of the bidders of Infrastructure Leasing & Financial Services? (IL&FS) commercial properties spread over 344,000 sq ft in an office tower GIFT TWO in Gujarat International Finance Tec-City (GIFT City) has raised concerns over transparency in the auction process and the delay to conclude the same.
The non-banking finance company listed these properties for sale in February, with the auction being conducted via the Swiss Challenge process. The properties are held by Sabarmati Capital Two Ltd (SCTL), a wholly owned subsidiary of IL&FS Township & Urban Assets Ltd (ITUAL).
The entire commercial tower has a total 540,000 sq ft space, of which some part was acquired by Infibeam Avenue in 2015. As per the Request for Proposals (RFP) released by IL&FS, Infibeam was allowed to match the highest bid to be received for these properties.
?We were informed verbally that Nila Spaces is the highest bidder and as per the RFP conditions, it was being forwarded to Infibeam for their right to match the highest offer. Subsequently on August 8, we received an official email from IL&FS informing us that our bid has been rejected without providing any valid reason and the furnished bank guarantee is being returned,? Deep Vadodaria, CEO, Nila Spaces, told ET.
IL&FS has stated the process has been conducted in a fair and transparent manner as per the RFP and any concerns in this regard are incorrect.?The bids for sale of Gift City 2 asset were invited under the Swiss challenge (with Infibeam being the original bidder) wherein the bidders from the public were asked to submit their bids as per the RFP. As per the provisions outlined in the RFP, Infibeam had the ?Right to Match? the highest bid received through this process, which they have matched," IL&FS said in response to ET?s query. Accordingly, the highest bid of Infibeam has now been taken to the Committee of Creditors (CoC) for their approval, which is underway. This will be followed by the laid down process of seeking (Retd) Justice D K Jain's and other applicable approvals. Meanwhile, the Earnest Margin Deposit (EMD)s of all unsuccessful bidders have been duly returned, the NBFC added.
A total of 58 commercial offices spread across 21 floors of the tower along with appurtenant car parking slots have been put on the block on an as-is-where-is basis as part of this auction. These properties include four offices spread over 1.15 lakh sq ft that are already leased to Tata Consultancy Services. SCTL was set up to develop commercial spaces in GIFT City and has built two towers with over 1.61 million sq ft total area. Of these, GIFT ONE has been operational since 2013, while GIFT TWO started operations in 2016.
GIFT TWO with a structure of a basement, ground floor and 28 upper floors holds 0.8 million sq ft. While the land belongs to GIFT City, the built-up area is held by subsidiaries of IL&FS. The land was leased to subsidiaries of IL&FS Group for a period of 99 years from 2013. IL&FS has been monetising its assets with an objective to manage debt obligations. The failure of IL&FS to meet repayment obligations in September 2018 had triggered a liquidity squeeze that gripped India?s non-banking finance sector.
As part of a clean-up, the government then replaced the IL&FS board, which has since been making efforts to resolve the debt situation.         

Realty developer Nila Spaces, one of the bidders of Infrastructure Leasing & Financial Services? (IL&FS) commercial properties spread over 344,000 sq ft in an office tower GIFT TWO in Gujarat International Finance Tec-City (GIFT City) has raised concerns over transparency in the auction process and the delay to conclude the same.The non-banking finance company listed these properties for sale in February, with the auction being conducted via the Swiss Challenge process. The properties are held by Sabarmati Capital Two Ltd (SCTL), a wholly owned subsidiary of IL&FS Township & Urban Assets Ltd (ITUAL).The entire commercial tower has a total 540,000 sq ft space, of which some part was acquired by Infibeam Avenue in 2015. As per the Request for Proposals (RFP) released by IL&FS, Infibeam was allowed to match the highest bid to be received for these properties.?We were informed verbally that Nila Spaces is the highest bidder and as per the RFP conditions, it was being forwarded to Infibeam for their right to match the highest offer. Subsequently on August 8, we received an official email from IL&FS informing us that our bid has been rejected without providing any valid reason and the furnished bank guarantee is being returned,? Deep Vadodaria, CEO, Nila Spaces, told ET.IL&FS has stated the process has been conducted in a fair and transparent manner as per the RFP and any concerns in this regard are incorrect.?The bids for sale of Gift City 2 asset were invited under the Swiss challenge (with Infibeam being the original bidder) wherein the bidders from the public were asked to submit their bids as per the RFP. As per the provisions outlined in the RFP, Infibeam had the ?Right to Match? the highest bid received through this process, which they have matched, IL&FS said in response to ET?s query. Accordingly, the highest bid of Infibeam has now been taken to the Committee of Creditors (CoC) for their approval, which is underway. This will be followed by the laid down process of seeking (Retd) Justice D K Jain's and other applicable approvals. Meanwhile, the Earnest Margin Deposit (EMD)s of all unsuccessful bidders have been duly returned, the NBFC added.A total of 58 commercial offices spread across 21 floors of the tower along with appurtenant car parking slots have been put on the block on an as-is-where-is basis as part of this auction. These properties include four offices spread over 1.15 lakh sq ft that are already leased to Tata Consultancy Services. SCTL was set up to develop commercial spaces in GIFT City and has built two towers with over 1.61 million sq ft total area. Of these, GIFT ONE has been operational since 2013, while GIFT TWO started operations in 2016.GIFT TWO with a structure of a basement, ground floor and 28 upper floors holds 0.8 million sq ft. While the land belongs to GIFT City, the built-up area is held by subsidiaries of IL&FS. The land was leased to subsidiaries of IL&FS Group for a period of 99 years from 2013. IL&FS has been monetising its assets with an objective to manage debt obligations. The failure of IL&FS to meet repayment obligations in September 2018 had triggered a liquidity squeeze that gripped India?s non-banking finance sector.As part of a clean-up, the government then replaced the IL&FS board, which has since been making efforts to resolve the debt situation.         

Next Story
Infrastructure Urban

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Next Story
Infrastructure Urban

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Next Story
Infrastructure Transport

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement