NTC should accept Lodha bid for Finlay Mills: BIFR

MUMBAI: The Board for Industrial and Financial Reconstruction ( BIFR) on Tuesday ruled that National Textile Corporation should accept Lodha Developers’ Rs 710-crore bid for the ailing corporation’s Finlay Mills in Central Mumbai, a person close to the development said.

The BIFR order was in line with the Delhi High Court’s verdict in February, which directed NTC to re-examine its decision to reject Lodha Developers’ bid. The High Court also ordered NTC to follow the process as envisaged in the BIFR revival scheme.

The BIFR order will expedite the sale process of 10.4 acres of land in the defunct Finlay Mills at Parel, said real estate experts. However, attempts to reach NTC MD K Ramachandran Pillai failed as he was busy in meeting till late evening.

A top official at Lodha Developers declined to talk on the issue in the absence of a written order. NTC had rejected Lodha’s bid of Rs 657 crore last year on the grounds that it was lower than the reserve price of Rs 710 crore. The developer then sweetened its bid by matching the reserve price.