Fadnavis orders inquiry into hotel deal amid row over Sena minister's company

Mumbai: Maharashtra Chief Minister Devendra Fadnavis on Monday announced a high-level inquiry to ascertain any irregularities in the tendering process to auction a hotel in Chhatrapati Sambhajinagar.

Shiv Sena MLA and state minister Sanjay Shirsat had come under fire after the opposition pointed out that his son's company was one of the three bidders.

Ambadas Danve, leader of the opposition in the legislative council, raised the issue through a calling attention motion.

The VITS Hotel in Chhatrapati Sambhajinagar belonged to Dhanda Corporation, a company listed on the Bombay Stock Exchange. The properties of the Dhanada Corporation, including the VITS Hotel, were seized under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999.

The court ordered the auction of the hotel. Accordingly, the Chhatrapati Sambhajinagar collectorate conducted proceedings.

According to the government-registered valuer's report in December 2018, the value of the hotel was Rs 75.92 crore. In 2025, when the property is being auctioned, the value is pegged as per the 2018 valuation. The value of the hotel is Rs 150 crore now as per private valuers, Danve claimed.

Danve alleged the lack of transparency in the auction process. He said three companies joined the process including M/s Siddhant Material Procurement and Suppliers Company. He said the company belongs to Maharashtra Social Justice Minister Sanjay Shirsat's son Siddhant.

He alleged that the company's registration form states that it had applied for registration in 2024 but has not yet been registered.

He alleged cartelisation in the tendering process. M/s Siddhant Material Procurement and Suppliers Company bid for the company at the price of Rs 47 crore. The next two bidders bid with a difference of just Rs 5 lakh each- at Rs 46.95 and Rs 46.90 crore.

"This is a fraud and the government is being defrauded in a big way. Sidhant Shirsat is the son of Social Justice Minister Sanjay Shirsat. There is no ITR. What action will be taken against the government officer who allowed this irregularity," Danve said.

Fadnavis said Revenue Minister Chandrashekhar Bawankule had stated that the entire process has been scrapped and a new process will be initiated to float fresh tenders.

"There will be a high-level inquiry to probe if there are any irregularities in this case to ensure transparency," he said.

Bawankule said the tender and the process have been cancelled. He said tenders were floated six times in the past but no bid was received. In the process, the base price and conditions kept coming down.

He said new tender will be on merit.

In the council, Shirsat stated that the tender had been floated six times in the past but received no bid. He also said the tendering process was being carried out as per the court's orders.

Amid flak, Shirsat last month said he was asking his son Siddhant to withdraw from the race to procure a hotel.