In a development raising eyebrows across Maharashtra’s hospitality sector, Chief Minister Devendra Fadnavis has ordered a high-level probe into the auction of the VITS Hotel in Chhatrapati Sambhajinagar, following allegations of irregularities and conflict of interest involving a minister’s family member.
The VITS Hotel, formerly owned by Dhanada Corporation, was seized under the Maharashtra Protection of Interest of Depositors Act and slated for auction. However, questions arose when one of the three bidders—M/s Siddhant Material Procurement and Suppliers Company—was found to be linked to Siddhant Shirsat, son of state Social Justice Minister Sanjay Shirsat. The company, reportedly unregistered and without income tax filings, placed a bid of INR47 crore, while the other two bids were just INR5 lakh apart—suggesting possible cartelisation.
Leader of Opposition Ambadas Danve flagged the issue, alleging that the auction lacked transparency and that the hotel’s true market value, currently pegged at INR150 crore by private valuers, was severely underestimated.
In response, Fadnavis confirmed that the auction has been scrapped and fresh tenders will be issued. Revenue Minister Chandrashekhar Bawankule assured the council that future auctions will follow a merit-based and transparent process—vital for maintaining investor confidence in Maharashtra’s hospitality landscape.
Source: HT
