The Centre has invited bids for the eatery, two years after a failed attempt to auction it. Hotel Rounaq Afroz, which is also known as Delhi Zaika, besides other properties of Dawood are likely to go under the hammer on November 14.
Chakrapani, the national president of Akhil Bharat Hindu Mahasabha, was in the city today along with his team to complete the formalities to apply for the bidding process.
He said when the toilet gets ready, he will invite Maharashtra chief minister Devendra Fadnavis to inaugurate it under the 'Swachh Bharat Mission.
Auction for the properties, including the hotel, was held in December 2015. Chakrapani had then bid successfully for Dawood's green Hyundai Accent car for Rs 32,000. He later burnt it at Indirapuram near Delhi.
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The dispensary, he said, will be a tribute to those who lost their lives in terror attacks committed by the gangster.
After Dawood fled India, properties belonging to him and his associates were seized under the provisions of Smuggling and Foreign Exchange Manipulators (Forfeiture of Property) Act, also known as SAFEMA.
The authorities later decided to auction these properties in a phased manner. However, past auctions of the gangster's properties drew a cold response from bidders, apparently due to fear factor.
Balakrishnan, through his NGO- Desh Seva Samiti- had successfully bid for the eatery, and even paid the earnest money of Rs 30 lakh, but failed to deposit Rs 4.28 crore in stipulated time.
"It would be more appropriate if a community centre comes up there, where children from all communities can come together and get computer training. This would serve a better purpose than a toilet," Balakrishnan said.