The Economic Times has reported that Bank of Baroda has emerged as the top bidder in the insolvency auction of Jet Airways’ BKC office in Mumbai. The auction was held as part of the ongoing insolvency proceedings against the grounded airline. The Bank of Baroda’s bid of approximately Rs 490 crores has been deemed the highest, surpassing those of other prominent bidders such as LIC and Yes Bank.
The BKC office, located in the heart of Mumbai’s financial district, is a prime commercial property that serves as the airline’s headquarters. The office space spans over 52,000 square feet and is situated in a highly sought-after location, making it a valuable asset for any company. The auction was conducted by the resolution professional, Ashish Chhawchharia, who is overseeing the insolvency proceedings against Jet Airways.
The sale of the BKC office is part of the efforts to recover debts owed by Jet Airways to its creditors. The airline, which was once one of India’s largest private carriers, ceased operations in April 2019 due to financial difficulties. The insolvency proceedings were initiated in June 2019, and since then, the resolution professional has been working to sell off the airline’s assets to repay debts.
Bank of Baroda, which is one of the largest public sector banks in India, has been actively participating in the insolvency proceedings of Jet Airways. The bank had an exposure of over Rs 1,000 crores to the airline and has been seeking to recover its dues through the sale of the airline’s assets. The acquisition of the BKC office is expected to help the bank recover a significant portion of its outstanding dues.
The sale of the BKC office is subject to approval from the National Company Law Tribunal (NCLT), which is overseeing the insolvency proceedings. Once the sale is approved, the Bank of Baroda is expected to take possession of the property, which could be used for its own operations or leased out to other companies. The transaction is expected to be completed within the next few weeks, pending regulatory approvals.