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.         

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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 Transport

Uttar Pradesh unveils infrastructure-led growth roadmap at RAHSTA

Mumbai, 9 July 2026: Uttar Pradesh’s ambitious infrastructure-led growth strategy took centre stage on Day 2 of the 16th RAHSTA Expo, where senior government officials outlined how expressways, industrial corridors and technology-driven governance are transforming the state into one of India's most attractive investment destinations.Delivering the keynote address, Srihari Pratap Shahi, IAS, Additional Chief Executive Officer, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), highlighted the state's long-term vision of integrating world-class expressways with industrial dev..

Next Story
Real Estate

NCW closes PRIME Offices Fund at Rs 40 billion

Nuvama and Cushman & Wakefield Management (NCW) has announced the final close of its flagship PRIME Offices Fund at approximately Rs 40 billion, exceeding its original target of Rs 30 billion following strong investor demand.The fund was launched to provide Indian investors with access to institutional-grade commercial office assets across key office markets in the country. According to NCW, the increase in the fund size was supported by strong investor participation and the availability of investment opportunities in India's office sector.The fund has already committed around 45 per cent ..

Next Story
Real Estate

Mayfair Housing adopts Autodesk Forma for digital project planning

Mayfair Housing has entered into a three-year strategic partnership with Autodesk to deploy Autodesk Forma, an AI-enabled cloud platform, as part of its digital transformation programme aimed at improving project planning and execution across its development and redevelopment portfolio.The platform will be integrated into the company's Building Information Modelling (BIM) workflow to support architects, planners and project teams during the early stages of design and development. Autodesk Forma combines real-world data, environmental simulations and collaborative workflows to facilitate data-d..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement