Mumbai ( The Hindu): Former journalist S Balakrishnan, who in a public auction in December bid Rs 4.28 crore to purchase Hotel Raunak Afroz, an eatery owned by gangster Dawood Ibrahim, on Thursday failed to pay the full amount to purchase the property located in Dawood’s hub of Pakmodia Street in South Central Mumbai.

Mr Balakrishnan, a journalist-turned-activist who runs the NGO Desh Sewa Samiti, had approached the competent authority of Safema (Smugglers and Foreign Exchange Manipulators (Forfeiture of Properties) Act) requesting them to extend the payment deadline by one month. However, the officials refused to extend the deadline beyond 5 pm. Mr Balakrishnan, who has chronicled the Mumbai underworld as a crime reporter for over three decades as a journalist.

“The Safema authorities had given me 30 days to make the full payment. I interpreted 30 days as 30 working days. But, since the period included Christmas holidays, New Year’s and Sundays, I effectively got only 20 days to raise the money. I could only raise Rs 45 lakh,” said Mr Balakrishnan speaking to The Hindu after the 5 pm deadline lapsed.

“Before the auction, I had received threats from Chhota Shakeel. Later, a shooter was arrested in that connection. So, I had to raise the money in extraordinary circumstances, with my movement seriously curtailed. I needed to move out to raise the funds. Nobody will come to me and give me the funds. So, I reasoned with the Safema officials to give me an extension instead of re-organising the auction,” he said.

Criticising the Safema authorities, he said the officials were “uncooperative”.

“They refused to open the shutter of the Hotel and allow me to inspect the property even after my winning bid. Secondly, I was not allowed to inspect any files pertaining to the property. When I requested extension of deadline in writing, they refused to give me a letter rejecting it, but rejected the request verbally,” he added.

He said on Friday, he will write to Prime Minister Narendra Modi, Finance Minister Arun Jaitley and Chief Minister Devendra Fadnavis urging them to set up a police station at the property with immediate effect. “I don’t want my forfeited money. Instead of organising a fresh auction, the government should set up a police station at the property, and use my earnest money of Rs 30 lakh as well as Rs 45 lakh I have collected, to construct the police station,” he said.

Mr Balakrishnan had emerged the top bidder, pipping Durhani Trust of Bohra community, involved in Bhendi Bazaar Redevelopment project, which bid Rs 4.22 crore.

He said he had approached the Dawoodi Bohra Trust to contribute the Rs 4.22 crore they had bid in public interest. “But, due to fear factor, they refused,” he said.

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