The 4,588 square feet of office space is on the block on the directives of the Asset Sale Committee of BIFR. The company's office is located on the 10th floor at Barton Centre and comes with six car and 12 two-wheeler parking spaces.
Modi Rubber was manufacturing and selling automobile tyres, tubes and flaps until its operations were suspended in August 2001 due to a family feud. It was subsequently declared sick by the BIFR in 2006. The asset sale is to facilitate its rehabilitation and revival.
To dispose of the property through auction, BIFR has roped in international property consultants, CB Richard Ellis. According to people in the real estate business, the property, which is governed by a lease that has a remaining 30-year life, "may fetch between Rs 7,000 per sq ft to Rs 8,000 per sq ft."
In May 2008, Modi Rubber had informed the stock exchanges that the company had been declared a sick industrial undertaking. With the efforts of State Bank of India, the operating agency, a draft rehabilitation scheme was submitted to BIFR which, after prolonged hearings and proceedings, approved it.