The three Mumbai-based properties of underworld don Dawood Ibrahim has been auctioned for more than Rs 11 crore on Tuesday.
Six flats - 18, 19, 20, 25, 26 and 28 in Damarwala Building, Hotel Raunak Afroz and Shabnam Guest House were the last known addresses of Dawood Ibrahim.
The auction was conducted by the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 by the Ministry of Finance.
The Raunaq Afroz hotel was sold for over Rs 4.5 crore, the Shabnam Guest House went for over Rs 3.5 crore and the rooms in the Damarwala building went for around the same price, the official revealed. "We are participating only because the buildings are important for a complete redevelopment", said a source from SBUT.The authority plans to sell the first two properties as the buildings are dilapidated and unsafe for occupation. "Thereafter, to ensure the safety of the families living in these buildings and to carry on the redevelopment project, we participated in the bidding and acquired these properties", a SBUT spokesperson said.
The SAFEMA administrator had issued a newspaper advertisement for a public auction of all the six properties inclusive on November 14 with a total reserve price of Rs 5.54 crore. He allegedly lived there with this family before leaving the country in 1986.
These properties could not be auctioned in 2015.
The Appellate Tribunal for Forfeited Property had cleared the takeover of the properties by the government under the provisions of SAFEMA and this cleared the deck for auction.
He also wanted to acquire Hotel Raunak Afroz to build a toilet there, to spread the message that how terrorism ends.