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HK investors send property prices soaring

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SCMP Reporter

THE real estate market in Bombay is in a tizzy after the sensational sale by tax authorities of the RMDC Press, an industrial plot of 1,940 sq m at Worli, last January.

The Tata Housing Development Corporation had earlier bought the plot to develop into a residential complex.

But tax authorities acquired the property for 95 million rupees (about HK$23.5 million) on suspicion that it had been under-valued.

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This created a sensation because the Tatas are widely believed to keep away from black money dealings. An even bigger sensation followed when four groups of Hong Kong-based Indians bid for the property.

The Essar group of companies was also keen to buy the plot for housing its executives since its offices were located nearby.

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The five groups bid fiercely, starting from Rs10.92 crores, then finally stopping at Rs21.75 crores offered by K. K. Motwani.

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