SAFEMA to take prosecution action against frivolous bidders for Dawood properties

The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) is all set to conduct an auction of six controversial properties in Mumbai and few other places in Maharashtra. The auction will take place on Tuesday at Indian Merchants' Chambers. Out of which three properties belonged to underworld don Dawood Ibrahim, with reserve price of nearly Rs 5 crore.

Sources within SAFEMA confirmed indiatoday.in that till date, "sufficient bidders" have shown interest in purchasing these properties. "As per the rules, all interested parties have already deposited their earnest money (which is 40 pc of the total reserve price) before SAFEMA", the source said.

SAFEMA declined to share the names, due to "secrecy clause" in the tender process. But if sources are believed than, around 10-12 bidders are named in the list.

Few of them are "real estate builders, advocates and private entities". In addition, Saifee Burhani Upliftment Trust's (SBUT) has also bid for all three properties of Dawood, located at Bhendi Bazaar in South Mumbai.

R N D'Souza, joint commissioner of SAFEMA would lead the bidding process and P Selvaganesh, competent authority; SAFEMA (from Chennai) would monitor the entire process, making sure "the auction remains fair and non-controversial".

Learning from its earlier auction, especially in the case of Ronak Afroz property (also known as: Delhi Zaika), first time ever, SAFEMA officials are geared up with stringent law in hand.

"If we found frivolous bidders participated in the process, in order to hamper the auction of all six properties, without any delay SAFEMA would go for prosecution action under Section 186 of Indian Penal Code (IPC) against those concerned persons/entities", one official said.

SAFEMA is not ruling out "frivolous bidding" by unknown entities on Tuesday, hence, it has sought maximum police deployment from Mumbai police to handle the situation, if arise.

"Those parties, who have paid the earnest money to SAFEMA, would be allowed inside the auction room, with one more extra person (total two persons per bidder). We are not expecting more than 20-25 persons for the bidding process," the source said. The result is expected to be announced by 3 pm, on the same day.

As per the publish reports, one Swami Chakrapani, chief of Akhil Bharat Hindu Mahasabha has bid for Ronak Afroz i.e. Delhi Zaika. When asked, SAFEMA did not confirmed his name, but gave an indication that he may not be directly involved in this process.

Out of Dawood's three properties, the first property would go under hammer is Building No. 24, Shabnam Guest House, at the reserve price of Rs 1,21,43,00. Second property i.e. Damarwala building (tenanted) with reserve price of Rs 1,55,76,000 and third property (tenanted) i.e. Ronak Afroz with reserve price of Rs 1,18,63,000 would be auctioned.

The whole intention to auction these properties at this minimum reserve price is because of its dilapidated conditions. "It's like playing with the life of tenants. SAFEMA would like to complete the auction process at the earliest and hand it over the new owner, so that these tenants could live a better life", the official said.

Once the result is out, the new owner of these properties needs to pay 25 per cent of hammered price in 30 days and the remaining amount in 90 days. These 90 days would be quite crucial for SAFEMA to analyse the genuineness of these bidders.