US’s south Bombay property has Rs 850 crore base price

MUMBAINov 18, 2011,: The United States government has set a reserve price of Rs 850 crore for its two-acre, sea-facing consulate building, Lincoln House, at Breach Candy. For its two-storey residential property, Washington House at Altamount Road, the minimum price has been fixed at Rs 350 crore, said the bidding memorandum issued to prospective buyers by DTZ international property advisors, retained by the US government as its exclusive representative to find buyers for these two prime south Mumbai properties.
The documents were accessed by TOI on Thursday. The bids are expected to be opened in the first week of December.However, there is a caveat for the successful bidder. The property sale will have to be cleared by the Union external affairs ministry and state government/local authorities.The bidding memorandum said the US government expects to procure this clearance within 90 to 180 days of getting the confirmation letter from the winning bidder.However, if the clearance does not come through within this period, the US government may cancel the transfer of property and hand over the money back to the bidder.
"The sale of the property can be effected subject to an approval from the ministry of external affairs, government of India, and from the state government/authorities, as may be applicable. The time frame for grant of such approval is not definite and on receiving such approval(s), the United States government will notify the successful bidder,'' said the document.
"However, in the event the US government is unable to obtain the approval within 90-180 days, it may terminate the arrangement of prospective transfer of the property to the successful bidder and refund the money deposited by the successful bidder...Alternatively, the US government may approach the successful bidder for a mutual decision on extension of the time limit for obtaining the said approval from the ministry of external affairs,'' it said.
The document stipulated that the successful bidder will have to obtain all relevant approvals (other than the approval from the Indian government) for transfer/sale/assignment of the property that may be required from any government/municipal/local authority/land owing authority.
"All relevant fee/charges/taxes/transfer fee/unearned increase in respect of the same shall be borne by the successful bidder, in addition to the purchase price proposed in the bid submission form. Further, all such approvals shall be obtained and all charges will be paid prior to execution and registration of the transfer deed as per the timelines stated above, and the successful bidder will provide to the US government sufficient documentary evidencing of the said compliance to the sole satisfaction of the US government,'' it said.