Lenders led by the Central Bank of India have initiated the auction of a nearly 95-acre land parcel owned by Wadia Realty Pvt Ltd in Thane to recover outstanding dues of more than Rs 3,918 crore from the defunct airline Go First. The property, which was mortgaged as security against the airline’s borrowings, will be auctioned on August 20 under the provisions of the SARFAESI Act.
According to the auction notice, the 94.71-acre land parcel is located at Bhayanderpada on Ghodbunder Road in Thane and carries a reserve price of Rs 1,375 crore. Interested bidders will be required to deposit 5 per cent of the reserve price to participate in the auction.
The sale is being conducted by the Central Bank of India on behalf of a consortium of secured lenders that includes Bank of Baroda and IDBI Bank. The lenders are seeking to recover Rs 3,918.55 crore, representing the principal amount and interest outstanding as of August 31, 2023, along with additional interest and applicable charges accrued from September 1, 2023.
Go First, formerly known as GoAir, owed a total of Rs 6,521 crore to a group of lenders, including Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank AG. These financial institutions formed the Committee of Creditors (CoC), which ultimately voted in favour of liquidating the airline after no viable resolution applicant emerged during nearly two years of insolvency proceedings.
The land parcel comprises multiple survey numbers in village Ovale, Bhayanderpada, and is registered in the name of Wadia Realty Pvt Ltd.
Go Airlines (India), the aviation venture of the Mumbai-based Wadia Group, was incorporated in April 2004 and launched operations under the GoAir brand in November 2005. The airline suspended services in May 2023 after filing for voluntary insolvency before the National Company Law Tribunal (NCLT), citing the grounding of a significant portion of its Airbus A320neo fleet due to Pratt & Whitney engine supply issues.
Before its financial collapse, Go First had planned to raise around Rs 3,600 crore through an initial public offering (IPO) in 2021 to reduce debt and fund working capital requirements. However, the listing was repeatedly delayed because of the pandemic, unfavourable market conditions and mounting financial stress before being abandoned following the insolvency proceedings.
In January 2025, the NCLT ordered the liquidation of Go First after creditors failed to secure a resolution plan, enabling lenders to monetise pledged assets and recover a portion of their outstanding dues.
Source: Money Control
