Go First Lenders Plan New Thane Land Sale to Recover Dues

Lenders to the defunct Indian low-cost carrier Go First are preparing to auction two parcels of land in Thane, Maharashtra, as early as July 2025 in an effort to recover part of their outstanding loans, according to Business Standard. The land, totaling approximately 383,300 square meters, was used by the airline as collateral and is now under the control of the Central Bank of India on behalf of three major creditors—Baroda Bank, Central Bank of India, and IDBI Bank.

Sources say the lenders are currently in discussions with prominent real estate developers interested in acquiring the Thane property. The land could potentially fetch up to INR 20 billion (USD 233 million), though previous attempts to sell the asset—including a planned online auction in March—have failed to materialize.

Go First, owned by the Wadia Group, ceased operations in May 2023 due to mounting debt, grounded aircraft, and capital shortages. In January 2025, the National Company Law Tribunal ordered the airline into liquidation after no viable buyer emerged and creditors lost confidence in a turnaround.

At the time of its collapse, Go First owed INR 114.63 billion (USD 1.34 billion) to creditors. This included INR 19.34 billion (USD 225 million) to the Central Bank of India, INR 17.44 billion (USD 203 million) to Baroda Bank, and INR 750 million (USD 8.75 million) to IDBI Bank.

Meanwhile, the airline’s arbitration case against engine supplier Pratt & Whitney in Singapore is ongoing, with lenders hopeful of recovering up to 50% of their dues through a favorable ruling.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com