Kolkata-based PSU MSTC Ltd, engaged for disposal of unsold properties of Petrofils Cooperative Ltd (PCL), Gujarat, has called for the need of review of minimum reserve price considering the condition of plants and machineries. "Some of our clients felt that the property being sold is over valued," MSTC suggested at a recent meeting of the asset sale committee.

"The size of the property under disposal is large and of high value. It would be necessary to have more time for display of the advertisement on the website (40-45 days) and then consider e-auction," it said.

For disposal of properties through e-auction, MSTC considers the highest bidder (H1) and submits the name of such party for consideration of the clients. In its opinion in e-auction, the identity of the bidders is not disclosed to others.

"Therefore, interested parties could upwardly revise their offer which would satisfy the requirement of inter se bidding. EMD of H1 bidder is only retained and EMD of rest of the bidders are returned within the stipulated time frame. Therefore, unsuccessful bidders do not suffer any financial hardship," MSTC said and suggested that existing terms and conditions need suitable modifications.

"As per our existing terms and conditions, all outstanding dues related to property are required to be borne by the purchaser. The outstanding liabilities of the respective properties should be displayed along with the minimum reserve price so that it gives clear picture on the overall cost of the property to the prospective bidders."

After discussing the points submitted by MSTC threadbare, the committee decided to further reduce by 20 per cent the existing upset price of plant and machineries of PCL?s Vadodara and Naldhari units among others.

PCL, registered under the Multi-State Cooperative Societies (MSCS) Act, is a joint venture of government of India (84 per cent), National Cooperative Development Corporation (6 per cent) and Weavers Cooperative Society (10per cent) with two manufacturing units in Vadodara and Naldhari in Bharuch district. Due to liberalisation, higher input costs and depleted margin, increased competition, delay in completion of expansion and consequent repeated losses, the Central Registrar of Cooperative Societies (CRCS) winded up PCL on April 11, 2001 and a liquidator was appointed for completing the liquidation process.

MSTC Ltd has been engaged for disposal of unsold properties of PCL like its Vadodara and Naldhari plants and Kanpur office.