Vits Hotel Auction Row: Maharashtra CM Devendra Fadnavis Orders High-Level Probe Amid Allegations Against Minister's Son
Maharashtra Chief Minister Devendra Fadnavis has ordered a high-level inquiry into alleged irregularities in the tender process for the sale of Vits Hotel, located in Chhatrapati Sambhaji Nagar. The decision follows multiple accusations of corruption and procedural lapses that have sparked significant political controversy.
Speaking in the State Legislative Council, Fadnavis announced that the tender process for Vits Hotel which was previously cancelled will be reinitiated and conducted transparently. He emphasised that the entire process will now be redone under strict scrutiny.
“We will form a high-level inquiry committee for the Vits Hotel tender process to ensure transparency. The principles of transparency will be followed throughout,” Fadnavis said.
The controversy stems from the auction of Vits Hotel, owned by Dhandha Corporation, and the alleged involvement of State Minister Sanjay Shirsat's son in the tender process. The hotel, with an estimated market value of ₹150 crore, was sold for just ₹67 crore, raising serious concerns about underpricing and fairness in the auction. Allegations suggest that Shirsat’s son participated in the bidding despite his company not being registered at the time, prompting accusations of favoritism and irregularities.
In response, Revenue Minister Chandrashekhar Bawankule stated that the tender was cancelled because the winning company failed to pay 25% of the required amount.
“The tender process has been cancelled, and we will conduct it again with full transparency,” Bawankule said.
The issue intensified after Opposition Leader in the Legislative Council, Ambadas Danve, leveled further accusations against the Shirsat family. He alleged that Siddhant Shirsat, the minister’s son, bypassed rules and used fake documents to enter the bidding process despite not having a registered company at the time.
“Action must be taken against the officials who allowed this,” Danve demanded.
Danve also highlighted that the Vits Hotel had previously been seized under the MPID Act due to financial irregularities and was put up for auction by the government. He named three companies — Siddhant Material Procurement and Suppliers, Laxmi Nirmal Holiday Company, and Kalyan Toll Infrastructure Company — as bidders, and questioned the valuation process.
“Why was the auction price set so low when the hotel’s real value is ₹150 crore?” he asked, referring to a 2018 government-approved valuation pegging it at ₹75.92 crore.
Danve further alleged:
The 150 hotel employees were not informed about the auction, violating their rights.
The three bidding companies failed to meet eligibility criteria such as providing three years of IT returns and publishing tender ads in state-level newspapers.
Tender conditions were diluted — for example, the minimum turnover requirement was reduced from ₹45 crore to ₹5 crore.
All bids were within ₹5 crore of each other, suggesting collusion.
He also pointed out that Siddhant Shirsat had declared no assets in his election affidavit.
“How can someone with no declared assets acquire a ₹150 crore hotel?” Danve asked, calling for a full investigation.
Facing mounting pressure, CM Fadnavis reiterated the government’s seriousness in addressing the issue:
“This matter has been taken very seriously. A high-level inquiry will be conducted, and anyone found guilty will be held accountable.
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