According to reports, the auction will be conducted at 10 am by a private auctioneering firm at Indian Merchant Chambers (IMC) Churchgate through E-Auction and public auction in Churchgate area. This is the second time in nearly two years the ministry is trying to auction Dawood Ibrahim's properites which include Hotel Raounaq Afroz-also known as Delhi Zaika- and two residential premises, Shabnam guest house and six rooms in Damarwala builidng, located on the Pakmodia street. The Ministry of Finance auctioned the property under Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976. The Saifee Burhani Upliftment Trust had made the highest bid of around Rs 11.5 crore for the three properties.
The Raunaq Afroz hotel attracted a bid of Rs 4.53 crore, Shabnam Guest house for Rs 3.52 crore while Rs 3.54 crore for the rooms in the Damarwala building.
Shabnam Guest House is a two-storey building on Yakub Street, Bhendi Bazar.
Swami Chakrapani of Hindu Mahasabha who wanted to buy Hotel Rounak Afroz could not participate in the auction as the demand draft, issued by his association as the earnest money to participate in the auction, couldn't be honoured in stipulated time.
The reserve price for the three properties are Rs 1.21 crore, Rs 1.55 crore and Rs 1.18 crore respectively.
Balakrishnan had also claimed that he received a threat asking him to withdraw from the auction.
This was done a week after the Thane Police slapped the Maharashtra Control of Organised Crime Act (MCOCA) on Dawood's brother Iqbal Ibrahim Kaskar.