In a major step towards recovering dues from the bankrupt Housing Development and Infrastructure Limited (HDIL), a massive 426-acre land parcel owned by the developer in Dahisar (West) is set to be auctioned. The property, mortgaged to the erstwhile Punjab & Maharashtra Cooperative (PMC) Bank, is now under the control of Unity Small Finance Bank (USFB), which has announced the auction to recover over ₹2,000 crore owed by HDIL and its associated entities.
The plot, located adjacent to the Dahisar crematorium at Anand Park along the Dahisar river, was taken over by the bank on December 26, 2023, after the developer defaulted on its loans.
According to the auction notice issued earlier this month, the bank aims to recover ₹2,059.30 crore from HDIL, Ravijyot Finance and Leasing Private Limited, and the company’s promoters, Rakesh and Sarang Wadhawan. The reserve price for the auction has been fixed at ₹1,234.62 crore, with an earnest money deposit requirement of ₹15 crore. The e-auction is scheduled for November 3, 2025, and bids will be accepted in multiples of ₹2 crore.
As per the auction terms, the successful bidder must deposit 25% of the bid amount on the next working day after sale confirmation, while the balance 75% must be paid within 15 days, extendable up to three months. Interested bidders will be allowed to inspect the property and access legal and technical documents after signing a non-disclosure agreement.
Spread across 426 acres, the land parcel holds significant redevelopment potential due to its location within the western suburbs, but it also faces several regulatory and legal hurdles. Municipal corporation records indicate that development on this plot will require clearances from multiple authorities, including the Ministry of Environment and Forests and the Maharashtra Coastal Zone Management Authority (MCZMA), given its proximity to the Dahisar river.
Additionally, if a high-rise development is planned, permission from the Airport Authority of India (AAI) will also be mandatory, since the site lies near the Remote Receiving Station across the railway line. These environmental and zoning restrictions are likely to influence both the nature and valuation of potential bids.
The property, originally mortgaged by Ravijyot Finance and Leasing Pvt. Ltd. to raise funds for HDIL’s promoters, is also subject to multiple ongoing litigations. Several proceedings are pending under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. Among these, a case filed by the bank before the Debt Recovery Tribunal (DRT) seeks recovery of ₹2,173.93 crore.
In an April 2024 order, the DRT directed Ravijyot Finance and Leasing not to create any third-party rights over the asset until the dispute is resolved. Additionally, the Brihanmumbai Municipal Corporation (BMC) has initiated its own proceedings to recover pending dues from HDIL. The civic body has begun the process of acquiring approximately 62,866.41 sq m, or 15.53 acres, of the total land parcel as part of its recovery efforts.
The Dahisar plot auction represents one of the most significant recovery efforts linked to the PMC Bank collapse. Of the bank’s ₹8,300-crore loan book, nearly ₹6,226 crore—or about 75%—was lent to HDIL and related entities, a concentration of exposure that eventually led to the bank’s downfall. HDIL filed for bankruptcy in August 2019, and the PMC Bank crisis unfolded shortly thereafter, exposing widespread financial irregularities and alleged collusion between the bank’s top executives and the developer.
The scandal led to one of the biggest cooperative banking crises in India, leaving thousands of depositors in distress. The Wadhawan father-son duo, who were arrested in October 2019 in connection with the PMC Bank fraud case, were released on bail in April 2024 after spending more than four years in judicial custody.
Industry observers note that the 426-acre Dahisar plot is among the largest single land assets to come up for auction in recent years, and it could attract interest from major real estate developers, infrastructure firms, and investment funds. However, experts also caution that the multiple litigations, pending regulatory approvals, and environmental sensitivities attached to the property could limit immediate development opportunities and delay any potential project.
For Unity Small Finance Bank, the auction marks a crucial step in its effort to recover dues from one of India’s most high-profile real estate and banking fraud cases, aiming to close a painful chapter that began with HDIL’s financial collapse in 2019 and culminated in the downfall of PMC Bank soon after.
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