Creditors of the defunct Indian low-cost carrier Go First (Mumbai International) are planning to auction two valuable blocks of land as soon as July to recover some of what they are owed, according to the Business Standard newspaper.
Earlier this year, the Central Bank of India took possession of around 383,300 square metres of land in Thane in the state of Maharashtra on behalf of Go First lenders Baroda Bank, Central Bank of India, and IDBI Bank. The airline had used the land as collateral for loans.
"The lenders are in talks with reputable builders who have shown an interest in acquiring the Thane land asset," a source told the newspaper.
The banks hope the land could fetch as much as INR20 billion rupees (USD233 million). There is no guarantee the land sale will happen, though. Several plans to sell the sites have fallen through, including a plan to conduct an online auction as recently as March.
Wadia Group-owned Go First ceased flying in May 2023, weighed down by debts, grounded aircraft, and a lack of capital. In January 2025, the National Company Law Tribunal ordered the airline's liquidation after it failed to sell and lenders ran out of patience. When it collapsed, Go First owed creditors INR114.63 billion (USD1.34 billion). Among others, Go First owed the Central Bank of India INR19.34 billion (USD225 million), Baroda Bank INR17.44 billion (USD203 million), and IDBI Bank INR750 million (USD8.75 million).
Go First's lawsuit against Pratt & Whitney is grinding its way through Singapore's International Arbitration Centre, and the banks are optimistic they may recover around 50% of their loans through compensation from the engine manufacturer.
