air india limited guidebook for monetisation of real

Guidelines for Monetisation of Real Estate Assets

AIR INDIA LIMITED

GUIDEBOOK

FOR

MONETISATION OF REAL ESTATE ASSETS / ARTEFACTS


Introduction

Monetisation of Real Estate Assets is key to any revival plan or Financial

Restructuring Plan particularly for any sick or loss making company. It is preferable

to unlock the value of unutilised immovable assets by way of sale or lease of such

Real Estate Assets. Such a measure would bring more revenue to the PSUs and

they would be less dependent on the government for a bail out. The Vijay Kelkar

panel set up by the government has also recommended monetisation of surplus Real

Estate Assets of PSUs. Accordingly, Ministry of Heavy Industries has circulated a

draft Cabinet note to put in place a mechanism for such monetisation.

In Air India, while formulating Financial Restructuring Plan, Deloittee has also

recommended proper monetisation of its immovable assets. Later, when AI has

finalised its Turn Around Plan (TAP) and Financial Restructuring Plan (FRP),

monetisation of its Real Estate Assets form an important ingredient. The Group of

Ministers (GOM) and the Committee of Officers (COO) constituted for finalising TAP

& FRP has also strongly recommended such a monetisation. Finally, when Cabinet

Committee on Economic Affairs (CCEA) in its meeting on 12th April, 2012 approved

the FRP & TAP for Air India, it has also approved monetisation of Real Estate Assets

in Air India to the tune of Rs.5000 crore over the next 10 years period with the

annual target of Rs.500 crore from the Financial Year 2013 onwards.

In this background Air India has chalked out its plan to monetise its unutilised/

surplus immovable Real Estate Assets over the next few years. In order to put in

place a transparent and credible mechanism, it is found prudent to come out with a

hand book detailing all finer aspects of the proposed monetisation procedure along

with relevant rules and instructions. Efforts have been taken to include relevant CVC

and Ministry of Finance guidelines along with a broad check list in this hand book.

However, this hand book is only a guide book and due care is required to be taken

during actual implementation of monetisation plan on the basis of relevant rules and

regulations in vogue at the time of taking a decision. Transparency and creditability

however, remains the key to the successful monetisation process.


INDEX

SL.No CHAPTER PAGE No

I Turnaround Plan (TAP) & Financial Restructuring Plan (FRP) 4

II Cabinet Committee on Economic Affairs (CCEA) decision

A. Purpose of monetisation

5

III Appointment of Consultant

6

IV Board Approval

7

V Oversight Committee – Terms of reference 7

VI CVC guidelines 8

VII

Ministry of Finance Circulars (i) Procedure to be followed with respect to Monetisation

of immovable assets A. Monetisation of properties through sale / alienation B. Monetisation of immovable assets through lease

rentals C. Monetisation through JV D. Monetisation of movable artefact assets.

10

VIII E Auction 13

IX

Module for Tendering

1. Introduction 1.1 Objective of the report

2. Pre Bidding Process

2.1 Setting Up An Overview Committee 2.2 Preparation of „Bid Document‟ 2.3 Preparation of „Property Information Docket‟ 2.4 Asset Marketing

2.4.1 Advertisement Campaign 2.4.2 Networking Activity

3. Bidding Process 3.1 Notice Inviting Tenders 3.2 „Expression of Interest‟ To Bid 3.3 Site Visits 3.4 Access To Data Room 3.5 Pre Bid Conference 3.6 Receipt Of Bids 3.6.1 Receipt of Bids in „Sealed Bid‟ format 3.6.2 E-Auction of Subject Property

3.7 Bid Opening 3.8 Selection and Intimation

4. Post Bidding Process

14

X Disposal Platform 29

XI Annexures A to H 34


I. TURNAROUND PLAN & FINANCIAL RESTRUCTURING PLAN

In the year 2011 Turnaround Plan (TAP) and Financial Restructuring Plan (FRP) of Air India was submitted to the Ministry of Civil Aviation (MoCA), Govt. of India, for its consideration. MoCA after processing it through Group of Ministers (GoM) and Empowered Committee of Officers (CoO) has placed it before Cabinet Committee on Economic Affairs (CCEA) for its consideration and approval. CCEA in its meeting held on 28th October 2011 approved TAP and FRP of Air India. In this regard, Para 4.8.4 of FRP states as under: “Air India proposes to increase its non-operating revenues in order to augment its core passenger revenues. According to its strategic intent and as envisaged in the TAP, the Company proposes to monetize its Real Estate Assets and generate Rs 5,000 crores over a period of 10 years starting from FY 2013.” Air India is in possession of a number of properties at various International and domestic locations, which are considered to be strategic assets and the same will be available for utilization for flight operations, Monetisation, leasing or any similar activity as deemed fit by Air India, as per future requirements. Air India has identified the Real Estate Assets which they propose to monetize over a period of time. The details of such Real Estate Assets are provided in the table below.

Table 1: Prospective Real Estate Assets for monetisation

City Location Area Leased/ Owned

Chennai Freehold land and Residential flats at Palavanthangal Village and IA Staff Housing Colony

19.13 Acres

Owned

Chennai Freehold Vacant No. 504, Annasalai / Teynampet, Chennai

63,897 Owned

Delhi Airlines House, 113, Gurudwara Rakabganj Road 0.77 Acres Owned

Delhi Baba Kharak Singh Marg, Connaught Place, New Delhi 16,188 Sq. Mt

Owned

Delhi Staff Quarters, Vasant Vihar, Delhi 30 Acres Owned

Delhi Unit No. 264, 297, 310, 489, 631, 678, 684, 714, Asiad Village Complex, New Delhi

1900 Sq. Ft each

Owned

Hyderabad Freehold Land (CTE Complex) and Buildings in Central Training Establishment

20.00 Acres

Owned

Mumbai Air India Building, Nariman Point 449,000 Land

leased/Building Owned

Mumbai Building at old airport, Kalina, Santacruz 23,989 Sq. Mt

Owned

Mumbai Office Building, NITC, Santa Cruz, Mumbai NA Owned

Mumbai Land at CIDCO Plot, Nerul NA Leased

NCR, Gurgaon DLF, Qutab Enclave, Phase-III, Gurgaon, Haryana 420 Sq. Mt

Owned

The above is an indicative Real Estate Assets identified for Monetisation may differ with actual

Monetisation program considering prevailing market conditions.


II. CABINET COMMITTEE ON ECONOMIC AFFAIRS

The Cabinet Committee on Economic Affairs (CCEA) took a decision on 12.04.2012 on the Turn Around Plan and Financial Restricting Plan of Air India, one of the key aspects of FRP is Revenue generation from Monetisation of Real Estate Assets. The projected revenue from such Monetisation is around Rs.5000 crores over the next 10 years. CCEA has also stipulated certain milestones which are linked to equity infusion by the Govt. of India. Milestones are as follows:-

1. The moderated growth scenario with a performance of PLF of 73% -75% for

the operational Turn Around Plan. Yield and utilization parameters as

indicated in the base case of the TAP.

2. The Financial Restructuring Plan – (a) Restructuring of short-term loans and

working capital loans as proposed by the SBI Caps; and (b) Equity infusion as

per scenario VII.

3. Induction of aircraft to be only based on route planning and economics; and to

be reviewed after 2014-15.

4. Hiving off of MRO and Ground Handling as proposed in the TAP.

5. Revenue generation through Monetisation of Real Estate Assets as

proposed in the TAP.

6. Cargo- Mail Revenue and other revenues as proposed in the TAP.

7. HR policy review across Air India including subsidiaries and right-sizing of

staff through an appropriate VRS package.

8. Completion of integrated IT systems for improving performance.

9. Customer oriented services as proposed in the TAP to be focused.

10. Ownership of the Turn Around Plan by the employees and management of AI

essential.

In accordance with the direction of CCEA, an Oversight Committee had been constituted in MoCA with representative from Department of Expenditure, MoCA, SBI, AS & FA (MoCA), CMD (AI) and JS (MoCA-In-charge Air India) to monitor and ensure that the milestones are achieved before the release of equity. One of the stated milestone is progress on Monetisation of Real Estate Assets.

A. Purpose of Monetisation

Air India has a vast property bank accumulated over a period of time at various locations in India and abroad. Some of the properties are lying unused for a long time. Besides, some properties are lying vacant because of shifting to Airport Terminal Building, city location and also as a result of stopping of operation from some locations etc. This gives an opportunity to the company to monetise such properties by way of sale, putting it on rent or even developing it as a joint venture to raise considerable


revenue. The revenue so generated can be utilized to retire its huge debts. This will help in improving its fiscal health and better balance sheet. In this background, monetisation of Real Estate Assets has become an important ingredient of the FRP.

III. APPOINTMENT OF CONSULTANT

In pursuance to the decision of Govt. of India authorizing Management to monetize its immovable properties, Air India Board approved the appointment of Real Estate Consultants. On 16th January 2013, consultant M/s DTZ was appointed through a global tendering process, which had the approval of the management. M/s DTZ was appointed with the following brief terms and conditions:

i. The Consultant would get the details of properties lying unused, under-utilized and of no use in the foreseeable future and shall prepare a roadmap for Monetisation of the properties.

ii. The Consultant would value the properties considered for Monetisation as of date, draw conceptual plan for suitable options.

iii. The Consultant shall provide site survey plans, use and application of development control regulations and bye-laws, give the inputs which would enhance the value of the property

iv. The Consultant shall also provide brief financial analysis, valuation of property, Reserve Price for the site, market survey, and collection of circle rate and preparation of Report etc.

v. The Consultant shall assist in execution of sale, lease and other options process thereof.


IV. BOARD APPROVAL Air India Board in its 51st meeting held at Airlines House, New Delhi on 14th February 2013 approved the following six under mentioned properties to be monetized by selling it in the first stage of Monetisation.

i. Land and Building at AI Colony, Kolkata.

ii. Residential Flat no. 6B, Middleton Street, Kolkata

iii. Land at Coimbatore

iv. AI Plot no. 37/13 at DLF, Qutab Enclave, Phase-III, Gurgaon.

v. Plot of Land (Lakshmi House), at Mount Road, Teynampet, Chennai.

vi. 04 nos Flats at Sterling Apartment, Mumbai Air India vide its Board of Directors meetings no. 17th dated 16.02.2009, 46th dated 28.05.2012, 49th dated 11.12.2012 and 51st dated 14.02.2013 approved and reiterated its decision to disposed of the residential property at Mauritius (MRU). Air India vide its Board of Directors meetings no. 37th dated 15.03.2011, 40th dated 15.09.2011, 46th dated 28.05.2012, 49th dated 11.12.2012 and 51st dated 12.02.2013 approved and reiterated its decision to dispose off the residential property at Nairobi (NBO). Air India vide its Board of Directors meeting no. 22nd dated 10.09.2009 and 24th

dated 11.11.2009, approved the sale of property in Hong Kong (HKG).

V. OVERSIGHT COMMITTEE

In order to have transparency in all the deals and to oversee the entire process of monetisation, Air India management on 14th Feb., 2013 constituted a three member Oversight Committee comprising of Justice (Retd) D.M. Dharmadhikari, an Ex-Supreme Court Judge, Shri Pratyush Sinha, an Ex-Chief Vigilance Commissioner and Shri V.N.Kaul, an Ex-CAG. The terms of reference of the Oversight Committee are:

i) To advise and oversee the process of valuation of immovable assets

owned / leased by Air India.

ii) To advise and oversee the process of maximization of Monetisation of

such Real Estate Assets.

iii) To advise and oversee the procedure to be adopted for revenue

generation out of such monetisation.

The Oversight Committee will monitor the entire procedures to be adopted for maximum realization of revenue from the Monetisation of the properties. Apart from the above, on 1st April, 2013 a three member Utilization Survey Committee has also been constituted comprising of Smt. Vineeta Bhandari, ED-NR,


Shri Ansbert D‟ Souza, GM- Finance and Shri K. G. Shekhar, DGM- Engg. The scope of the Committee will be:

i) The utilization survey shall be undertaken by the committee for

determining the utility of the property proposed to be monetized.

ii) The survey shall enable determination of the mode of Monetisation

depending upon requirement or otherwise of all such properties i.e.

whether such immovable property be monetized by sale or putting it on

lease or rental or by way of developing it as a JV project.

VI. CVC GUIDELINES Air India further proposes to adhere to the CVC guidelines and based on the same has prepared general checklist for eliminating common lapses observed during tender process. Air India officials are required to deal with variety of Tenders at some stage of their day to day office routine work. The requirements of various departments differ in ordering the goods or purchasing/procuring the materials or awarding a contract to an outside agency etc. However, the basic principles of tender procedure remain the same. The Tender Procedure is mainly categorized as follows:

1. Preparation of Technical Specifications

2. Drafting & Preparation of Tender Document

3. Preparation of Estimated Cost

4. Publication of Tender Notice

5. Pre-Qualification of contractors

6. Scrutiny of applications & Empanelment of Parties

7. Issue of Notice Inviting Tender (NIT)

8. Sale of Tender Documents to empanelled parties

9. Receipt & Opening of Technical Bids

10. Scrutiny & Evaluation of Technical Bids

11. Receipt & Opening Commercial Bids

12. Scrutiny & Evaluation of Commercial Bids

13. Acceptance of Tender Bid

14. Post Tender Negotiations

15. Award of Work

16. Formalities after Award of Work


While dealing with Tendering procedure officials have to take utmost care of observing various aspects of Tender Procedures. To overcome the irregularities, to improve the tender process and to avoid lapses in various contracts, checklist must be taken into account. They are given below in brief:

i) Filing system

ii) Provisioning

iii) Preparation of tender document & specifications

iv) Preparation of estimated cost

v) Appointment of consultant

vi) Invitation and opening of tenders

vii) Tender / bid document

viii) Postponement of tender opening

ix) Receipt of tenders

x) Opening of tenders

xi) Scrutiny of tenders and award of work

xii) Post tender negotiations

xiii) Technical evaluation of tenders

xiv) Formalities after award of work (ignored at times)

xv) Payment for the contractor/agency

xvi) Purchase preference to public sector enterprises

xvii) Reasonableness of prices

xviii) Advance payment & bank guarantees

xix) Performance bank guarantee

xx) Stipulation of delivery period in the contract

xxi) guarantee / warranty terms

xxii) Modification of contract terms / specifications

xxiii) Post-contract monitoring

xxiv) Penalty –termination clause

xxv) The cardinal principles in tendering procedure


VII. MINISTRY OF FINANCE CIRCULARS The Government of India and Ministry of Finance have issued instructions with regard to sale/ alienation of land and properties from time to time which have envisaged and placed the mechanism for the procedure of Monetisation in departments / organizations / Govt. funded autonomous bodies and PSUs. A list of such instructions is as below:

Govt. of India in its General Financial Rules 1963 vide annexure to chapter 8

Rule 102 (1) dated 30/7/2002 states that tenders may be advertised in

national dailies in addition to the Indian Trade Journal, which is being

published by DG of Commercial Intelligence and Statistics, Kolkata a Govt.

publication. For improving e-governance and bringing greater transparency,

Organization‟s website to be used. (Annexure A)

Govt. of India, Ministry of Finance, Deptt. of Expenditure vide its circular no.

8(18)/EII(A)/2010 dated 25.06.2010 has laid down guidelines for sale/ grant/

assignment/ allocation/ disposal of Govt. assets. (Annexure B) The approval

of Ministry of Finance is required for even assets created from Govt. funds by

autonomous bodies.

Govt. of India, Ministry of Finance, Deptt. of Expenditure vide its circular no.

8(18)/EII(A)/2010 dated 28.03.2011 has further laid down guidelines for sale

or long term lease of land belonging to the Govt. or Govt. controlled statutory

bodies. (Annexure C) The approval of the Union Cabinet is required.

Govt. of India, Ministry of Finance, Deptt. of Expenditure, Public Procurement

Cell vide its circular no. 10/1/2011-PPC dated 30.11.2011 has made

mandatory the publication of Tender Enquiries on the Central Public

Procurement Portal. (Annexure D)

Govt. of India, Central Vigilance Commission vide its circular no. 98/ORD/1

dated 11.09.2003 stated that departments/organizations should ensure that

the entire process of e-Procurement/Reverse Auction is conducted in a

transparent and fair manner. (Annexure E)

Govt. of India, Ministry of Finance, Deptt. Of Expenditure vide its circular no.

14(12)/2008-E-II(A) dated 20.07.2011 has laid down guidelines for use of

Integrity Pact by PSUs – Implementation of Administrative Reforms

Commission (ARC) recommendation. The Commission recommends

encouragement of the mechanism of Integrity Pacts and a copy of the

generally applicable Integrity pact is attached (Annexure F). Ministry of

Finance has recommend that the Integrity pact may be used by all

Government Ministries/Departments and Public Sector Undertakings to make

such agreements enforceable.


Procedure to be followed with respect to Monetisation of immovable assets

Keeping in view various OM‟s issued by the Department of Expenditure, Ministry of Finance, Government of India and General Financial Rules 1963 following procedure may be followed with respect to Monetisation of immovable assets as per the Financial restructuring plan approved by the CCEA in its meeting held on 14th April 2012.

The Monetisation can be done through:

A. Monetisation of properties through sale / alienation 1. Utility survey of the properties owned or taken on lease by Air India.

2. Short listing of properties that can be monetized by way of sale / alienation /

developing such properties on JV or long term lease taking into account report

of the utility survey undertaken by the Management of Air India..

3. Proper valuation of such properties as per prevailing market price through a

Global consultant M/s DTZ (already selected/appointed by Air India for the

purpose through a competitive bidding system).

4. Placing such proposals before the Board of Directors for their approval.

5. Forwarding the proposal to the Ministry of Civil Aviation for necessary

approval of the Government.

6. After receipt of approval from the Government, the process for sale through e-

auction or any other mode / mix-mode for disposal of any immovable assets

considered by the Board of Directors if found appropriate on the advice of the

consultant and after examination by the Oversight Committee.

7. Advertising of the properties as per the General Financial Rules 1963 vide

annexure to chapter 8 Rule 102 (1) and Ministry of Finance, Deptt. Of

Expenditure, Public Procurement Cell vide its circular no. 10/1/2011-PPC

dated 30.11.2011.

8. Conduct of e-auction / other mode as decided by the competent body.

9. Evaluation of bids.

10. Award to the highest bidder.

B. Monetisation of immovable assets through lease rentals:

1. Analyzing the merits of putting a property on short/medium/long-term lease

rental particularly if such property can be required in future during the

expansion phase of TAP/FRP.

2. Such properties may be monetized through lease rentals for a particular

period of time.

3. Placing such proposals before the Board of Directors for their approval.

4. Any other mode/mix-mode for disposal of any immovable assets may also be

considered by the Board of Director if found appropriate on the advice of the

consultant and after examination by the Oversight Committee.


C. Monetisation through JV:

1. Analysing the merits of putting a property on JV particularly keeping in mind

the expansion phase of TAP / FRP.

2. The Utility Committee and M/s DTZ is to examine and advise if the, properties

can be utilised/constructed through JV.

3. Properties to be utilised through JV‟s could be those having high commercial

value, interalia in terms of:

Air India futuristic plans

Strategic location of the land / building

Terms of Lease deed of the land / building

Allowance of FSI & High rise building

4. On going through JV Channel, Air India can retain the ownership / lien on the

plot and at the same time can earn some returns by ways of lease rentals and

sale of floors.

5. Placing of such proposals before the Board of Directors for their approval.

Any other mode / mix-mode for disposal of any immovable assets may also be considered by the Board of Directors, if found appropriate on the advice of the consultant M/s DTZ and after examination by the Oversight Committee.

D. Monetisation of movable artefact assets:

Air India over the span of time has acquired priceless artefacts from all over the world, which has immense value in terms of money too. The procedure that is proposed to be adopted for such monitisation is as under:

1. Short listing of artefacts that can be monetized. 2. Proper valuation of such artefacts as per the prevailing market price through

global valuer‟s. 3. Categorization of the artefacts as per the valuation. 4. Placing proposals for such artefacts, for Monetisation before the Board of

Directors for their approval. 5. Forwarding the proposal to the Ministry of Civil Aviation for necessary

approval of the Government. 6. Advertising of the artefacts to be monetized as per the Government

Guidelines. 7. Auction may be carried out through credible art auction organisation, e.g.,

M/s Sotheby‟s, M/s Christie‟s etc. 8. Award to the highest bidder.


VIII E AUCTION What is an e-Auction: e-Auctions are negotiations conducted via an online platform. Suppliers get the possibility of improving their proposals based on market feedback (e.g. rank in negotiation) and are considered to be the most transparent way of conducting negotiations. E-Auctions include both price and non-price (service level, quality, etc.) parameters to ensure that the result of the auction reflect the overall best total value for the organisation. Benefits of participating in an e-Auction

Transparent process

It will be clear to participants why they won/lost the e-Auction

Participants will receive real-time market information

Contracts can be awarded faster

Time saving compared to face-to-face negotiations

E auction thus provides suppliers a possibility of improving their proposals based on market feedback and are considered to be the most transparent. Participants come to know the reasons of winning and losing the e-Auction. Also apart from receiving real-time market information, contracts are awarded faster. For example, under e-Auction process Organization and Service provider duties and responsibilities are: Analysis of spend categories, Develop unambiguous specification/ vendor listing, Approval of e-Sourcing service provider, Develop e-RFP/ Conduct pre-qualification, Conduct and monitor the e-Auction, Evaluation of bids, Award and Value proposition analysis. A Model RFP is enclosed at Annexure G.


IX. MODULE FOR TENDERING

1 Introduction

Air India Limited (AIL), the national carrier of India, intends to generate capital through monetization of properties to yield around INR 5,000 Crore over the next few years.

1.1 Objective of the report The objective of this report is to provide a transparent mechanism which can be used to undertake the monetization of surplus Real Estate Assets. This „Disposal Methodology Guidelines‟ provides procedures, terms and conditions and other guidelines which should be followed while undertaking the monetization process. This report provides guidelines to be followed for identifying, qualifying and allowing prospective bidders to participate in the proposed monetization of real estate assets of AIL. The „Disposal Methodology Guidelines‟ has been prepared comprising the following:

Overview of the „Bidding Process‟ as described in (Figure 1).

Detailed methodology for undertaking monetization of AIL‟s real estate assets.

Rest of the report elaborates on the above mentioned topics.

Figure 1 – Bidding Process Framework


2 Pre Bidding Process The pre bidding process should be aimed at preparing for a smooth and transparent execution of the monetization exercise. Given the diversity of Real Estate Assets and their location, a comprehensive information dockets which comply with necessary regulatory framework and market practices should be prepared. The key activities to be undertaken in pre bidding process are as follows.

2.1 Setting Up An Overview Committee

There should be an „Overview Committee‟ to monitor the bidding process and ascertain transparency in execution of the monetization process. Besides ensuring adherence to bidding protocols, as detailed in this „Disposal Methodology Guidelines‟, the overview committee shall also report to appropriate authorities within the company on the progress of monetization process.

2.2 Preparation Of „Bid Document‟

Owing to the complexity of monetising real estate assets through a bidding process, it is imperative to prepare a comprehensive „Bid Document‟ which details the process of bidding along with terms and conditions of the transaction. The guidelines in preparing the „Bid Document‟, which will include, but may not be limited to the following contents, are detailed below:

Notice Inviting Tender (NIT) o Notice Inviting Tenders are Request For Proposals (RFPs) from

prospective bidders. NIT should be prepared and published in newspapers, as detailed in paragraph 2.4.1 and paragraph 2.4.2.

Non Disclosure Agreement (NDA) o Non Disclosure Agreement (NDA). The NDA should provide for

an undertaking from proposed bidders that the „Bid Document‟ and all other information, documents or discussion relating to the bidding process is confidential and shall not be used by the prospective bidder for any purpose other than evaluation of the property for perspective of bidding process.

o NDA should also highlight the bidder‟s acceptance to refrain from reproducing, forwarding or dissemination any document or information on the bidding process to any other person except its legal and financial advisors.

Draft Agreement of Sale o The draft „Agreement of Sale‟ should be a contractual agreement

between AIL and successful bidder capturing the terms of sale, price consideration of the property and timelines of payment.

o The draft Agreement of Sale should be part of the „Bid Document‟ for potential bidders to understand the terms of transactions.


Draft Sale Deed o There should also be a draft „Sale Deed‟ - a legal document which

shall transfer the ownership of the property from seller (AIL) to the buyer (successful bidder).

o Sale Deed would be executed between AIL and the buyer on payment of complete sale consideration.

Expression of Interest To Bid o The format for „Expression of Interest to Bid‟ should be prepared

to pre-qualify prospective bidders, if necessary. Expression of Interest to Bid should be notification from the bidder showcasing the intent to participate in the bidding process in accordance with rules and provisions of the bidding process detailed in the „Bid Document‟.

o Additionally, „Expression of Interest to Bid‟ template should

provide a profile of prospective bidder along with information on financial sufficiency, in a prescribed format.

Bid Submission Form o A proposal from prospective bidders capturing the purchase price

for the property under consideration should be prepared. The Bid Submission Form should also provide consent of bidders to adhere to the payment schedule and timelines.

o All prospective bidders to ensure financial bid submitted by him /

her should remain in force and valid for a period of 90 days from the date of opening of the financial bid as prescribed in the NIT (“Bid Validity Period”). AIL shall reserve the right to reject / disqualify the bidder, who does not comply with the said clause.

Details of Earnest Money Deposit

o In order to exhibit prospective bidder‟s participation in the bidding process is sincere and made in good faith, „Earnest Money Deposit‟ should be sought from prospective bidders.

o Interest free Earnest Money Deposit (“EMD” or Earnest Money Deposit”) could be set at prescribed percentage of „Reserve Price‟ (as per the table 1 below), which may or may not be stated in the „Bid Document‟. EMD should be payable in form of Demand Draft or Pay Order drawn in favour of „Air India Ltd.or through electronic transfer, details of which should be mentioned in the specific Request For Proposal‟


Slab no. Said Property Reserve Price

EMD (% of the determined Reserve Price)

Slab 1 up to INR 2.00 crore 4 % of the Reserve Price

Slab 2 Between 2.00 and 5.00 crore

3 % of the Reserve Price

Slab 3 Between 5.00 crore and 15.00 crore

2.5% of the Reserve price

Slab 4 Above 15.00 crore 2% of the Reserve price

Selection methodology for successful bidder o A scoring methodology to evaluate and select the highest bidder

amongst all the bids received for subject property / properties should be prepared.

o Depending upon the type of transaction or monetization strategy, relevant parameters should be included in selection of the successful bidder.

Payment Schedule and Timelines o In order to make prospective bidders aware of payment timelines

in advance, there should be a schedule for payments to be made by the bidders on achieving respective milestones.

Any other required document If required, in addition to above key documents, additional documents / information in the „Bid Document‟ may be included. Any addendum or corrigendum to the „Bid Document‟ should be communicated to all prospective bidders through appropriate mechanism.

2.3 Preparation of „Property Information Docket‟ In addition to the „Bid Document‟, a detailed „Property Information Docket‟ should be prepared before initiating the bidding process. The property information docket should include, but may not be limited to, following documents:

Property Description o The key attributes of the subject property should be explained in

the property description, highlighting the type of property (residential apartment, commercial premise, land, etc) along with area details (size of the property), complete address, and present status of the property (currently vacant or occupied), etc.

Location description o A brief note on neighbourhood profile of the property should be

prepared. Moreover, access to the property, existing activity nodes (commercial / residential), existing and proposed


infrastructure developments, etc, should be explained in the location description.

List of available documents o A list of all documents available with respect to the subject

property should be included in the property information docket. The list of documents should include, but may not be limited to Title Certificate, Tax Receipts, Sale Deed / Lease Deed, etc

o For documents not available (if any), an explanation on status of such documents may be included in the property information docket.

2.4 Asset Marketing

With an objective to reach out to a wider section of prospective buyers and create excitement in market place, a detailed asset marketing plan should be prepared. The asset marketing plan must include advertisement campaign and networking exercise which should be conducted as per the following guidelines:

2.4.1 Advertisement Campaign To ensure highest transparency and maximum monetization potential of the Real Estate Assets, a detailed advertisement campaign should be undertaken through well circulated newspapers along with other source of marketing. The key guidelines to undertake an effective advertisement campaign are given below:

Advertisements templates should be prepared incorporating property name, area details, location of the property, bidding and contact details (including E-Mail and telephone coordinates). Moreover, advertisement templates should also carry a web address (on existing AIL‟s website) which will provide in-depth details of the subject property including photographs of the property, reserve price, etc.

A detailed marketing plan, including names of newspaper (both regional and national newspapers), dates for placing advertisements in newspapers and frequency of advertisements, should be defined in the advertisement campaign.

Moreover, in order to receive online „Expression of Interest‟ from potential bidders at a later stage, a separate portal should be created using the existing IT platform of AIL or a third party which shall be appointed by AIL to manage the e-auction.

2.4.2 Networking Activity

A „Public Relationship Exercise‟ is vital to capitalise the momentum created through the advertising campaign. The key activities to be undertaken while conducting a networking exercise are detailed as follows:


Prospective bidders should be kept abreast of the bidding process and queries on the bidding process, property details, etc should be addressed.

Interest amongst prospective buyers should be created, either through an internal team or by availing services of an external consultant, to bid for advertised properties.

3 Bidding Process

The bidding process must be aimed at maintaining transparency and fairness in receipt and opening of bids. The bidding process should be executed as per the following defined guidelines:

3.1 Notice Inviting Tenders Notice Inviting Tenders (NITs) should be placed in public media inviting prospective bidders to bid for subject properties. The key steps in preparing and publishing NITs are details as follows:

Notice Inviting Tenders should be prepared as per the template and guidelines detailed in paragraph 2.4.1. NITs must be placed, as per the defined templates, in at least one national and one regional newspaper (region where subject property is located).

Moreover, a portal / web-link on existing IT platform of AIL‟s website should be created. In addition of newspapers, Notice Inviting Tenders inviting bids from prospective bidders shall also be placed on the AIL‟s web portal.

3.2 „Expression of Interest‟ To Bid A notification from the bidder expressing the intent to participate in the bidding process in accordance with rules and provisions of the bidding process detailed in the „Bid Document‟. „Expression of Interest‟ should be sought and evaluated as pre-qualification criteria of prospective bidders, both in case of sealed bid methodology as well as e-auction process.

Prospective bidders may access „Expression of Interest‟ and „Non Disclosure Agreement‟ on the web portal created in the existing IT platform of AIL or by e-auction agency finalised by AIL.

„Expression of Interest‟ should be sought from any person (including any individual, company, joint venture or consortium), in the pre-defined format, in order to participate in the bidding process for the subject property/properties.

In an event of an e-auction methodology being adopted for the monetization process, prospective bidders will be required to register on the e-auction web portal.


On successful registration, prospective bidders will be provided with an unique registration ID through appropriate mechanism (Example – E-Mails).

Using the unique registrations ID, prospective bidders will be required to provide a brief profile (as per prescribed format) and scanned documents establishing financial sufficiency.

Information on financial sufficiency (in the prescribed format) will include, but may not be limited to, balance sheet (in case of a company / firm), bank statements, fixed deposits, income tax returns, etc.

Prospective bidders should also provide a signed confidentiality agreement or Non Disclosure Agreement (NDA) on the e-auction web portal

Each „Expression of Interest‟ should be evaluated on pre-defined considerations which should include, profile of prospective bidders, financial strength, main sources of income, etc. If required, prospective bidders should be asked to provide further information and clarifications post submission of „Expression of Interest‟.

The expression of interest should be rejected in case the prospective bidder fails to provide required information based on the pre-defined consideration (profile, financial sufficiency, etc).

On successful verification of Expression of Interest and submission of the EMD, login credentials (including a system generated password) to the e-auction web portal would get generated and conveyed to the prospective bidders.

Scheduled dates and timelines to conduct „Site Visit‟ should be communicated to all bidders with accepted expression of interest. Prior registration from prospective bidders before undertaking site visit should be mandatory.

Additionally, all prospective bidders (with accepted expression of interest) should be provided with timelines to access data room and pre-bid conference.

3.3 Scheduled Site Visits As properties are being monetised on an „As Is Where Is‟ basis, unless specified otherwise in the bid document, prospective bidders should be recommended to personally acquaint themselves with the subject property. Prospective bidders may undertake a „Site Visit‟ of the property as per the scheduled date and time. The key activities to be undertaken while conducting site visits are listed below:

A team should be nominated to manage site visits of the subject property / properties.


Site visits should be allowed for only those prospective bidders with a prior registration as detailed in paragraph 3.2.

Prospective bidders will be allowed to inspect the subject property as per the scheduled date and timelines. All such site visits should be undertaken only in presence of nominated team.

During site visits, prospective bidders can undertake inspection of the subject property. The nominated team should address queries (subjected to property details like carpet / built-up area, age of the property, location profile, etc) from prospective bidders.

For any other query (relating to bidding process, documentation, etc), prospective bidders should be requested to either access the „Data Room‟ (as detailed in paragraph 3.4) or attend the „Pre Bid Conference‟ (described in paragraph 3.5)

On completion of site visit, prospective bidders will be required to provide an acknowledgement of site inspection along with their complete contact details. The nominated team, present on the subject property during site visit, will collect acknowledgement of site inspection and contact details from all prospective bidders who have visited the property.

The nominated team present on site should hand over property brochures which will include property details as well as dates and timelines to access „Data Room‟ and „Pre-Bid Conference‟ with prospective bidders.

3.4 Access To Data Room Prospective bidders will require access to „Property Information Docket‟ to conduct all relevant diligences and prepare their bids and will be able to view Property Description and Location Description as mentioned at Para 2.3. However, it remains critical that the access to the classified confidential documents is limited to interested and eligible prospective bidders only. Therefore, in order to disseminate these information, a „Data Room‟ should be created using AIL‟s existing IT platform. Guidelines to create and access „Data Room‟ are detailed below:

A Data Room should be set-up using its existing IT platform.

The „Property Information Docket‟ (as detailed in paragraph 2.3) should be uploaded in the Data Room in a downloadable format.

Access to data room should be restricted to only those bidders whose expression of interest has been accepted (as detailed in paragraph 3.2).


Using login credentials provided in step 3.2, prospective bidders (whose expression of interest has been accepted) will be allowed to access „Data Room‟.

Potential bidders can access the „Bid Document‟ and „Property Information Docket‟ stored in the data room. The information and document available on the „Data Room‟ are confidential and no part of the document shall be copied, forwarded, disseminated, released or disclosed by prospective bidder to any other person except their legal and financial advisers.

3.5 Pre Bid Conference

In order to address queries, which may arise on the bidding process, bid document or property documents, a „Pre Bid Conference‟ with prospective bidder may be conducted under video coverage, depending upon the size and scale of properties under consideration. The objective of the pre-bid conference is to allow potential bidders to request clarification on the bidding process and property document. The pre-bid conference will also provide an opportunity to make modifications to the bidding process, if found necessary based on queries and comments from prospective bidders.

Invitations through e-mail to attend „Pre-Bid Conference‟ should be sent to all eligible prospective bidders. The invitation to pre-bid conference should provide date, time and venue details of the pre-bid conference.

At the scheduled date, as specified in the Bid Document and above invitation, a pre-bid conference should be conducted to address any query from prospective bidders. However, attendance to „Pre-Bid Conference‟ will be optional for prospective bidders.

A team should be nominated to manage and conduct pre-bid conference. In addition to the property details, the team of representatives should also provide a detailed explanation of the bidding process and key timelines (example submission of bids and opening of bid documents). Additionally, the nominated team should also address queries on the bidding process or subject property from prospective bidders.

Minutes of „Pre Bid Conference‟ should be prepared within a reasonable time of conducting the pre-bid conference and shared with all prospective bidders using appropriate mechanism. Additionally, the minutes of pre-bid conference shall also be displayed on AIL‟s website.

Post the „Pre-Bid Conference‟, if found necessary, modifications or amendments should be made in the bidding documents, bid process, etc in any manner that will optimize monetization process.


Any modification or amendments to the bidding document or the bidding process should be communicated to prospective bidders through appropriate mechanism preferably by email. Additionally, such modifications (if any) will also be placed on the web portal of AIL.

3.6 Receipt Of Bids The bids may either be received in a „Sealed Bid‟ format or uploaded through an e-auction portal of the subject property. The guidelines to receive bids in either format are detailed in the following paragraphs 3.6.1 and 3.6.2

3.6.1 Receipt of Bids in „Sealed Bid‟ format In order to participate in the bidding process using the sealed bid format, a bidder must deliver „Sealed Bid‟, no later than the bid deadline (as detailed in the „Bidding Document‟), in person/ authorized representatives or by recorded delivery post at the address mentioned in the „Bid Document‟. Guidelines to be followed regarding submission of bids are detailed below:

In order to be considered as an accepted bidder, prospective bidders must provide the following documents in two clearly marked separate envelopes. The contents of the two sealed envelopes are as follows: Envelope A: The contents of Envelope A are as follows: o Acknowledgement Letter – A letter, in the prescribed form, stating

that the bidder has undertaken the site visit of the property and read through the „Bid Document‟ and „Property Information Docket‟ in the virtual „Data Room‟ and have conducted all necessary diligences on the said Property to their satisfaction. The due diligence shall be conducted by the prospective bidders at their own cost and will.

o Earnest Money Deposit – An Earnest Money Deposit (EMD), in form

of a Pay Order or Demand Draft favouring „Air India Ltd‟ or electronic transfer, as per the prescribed amount in the „Bid Document‟.

o Tender Fee – Prospective bidders may also be required to pay a „Non Refundable & Non Adjustable Tender Fee‟, in form of a Pay Order / Demand Draft favouring „Air India Ltd‟ or through electronic transfer, as per the prescribed amount in the „Bid Document‟.

o Integrity Pact – Prospective bidders will have to submit an integrity pact in the prescribed format.

Envelope B: The contents of Envelope B are as follows: o Bid Form – A dully filled „Bid Form‟, as prescribed in the „Bid

Document‟, capturing the proposed purchase price and the Bid Validity Period of 90 days from the bidder. Additionally, the bid form will also provide the bidder‟s acceptance of rules and guidelines of the bidding process, as described in the „Bid Document‟.


Both the envelopes (Envelope A and Envelope B) should be placed in a sealed third envelope and delivered either in person or by recorded delivery post at the address mentioned in the „Bid Document‟, within the bid submission deadline.

On the bid submission date, only „Envelope A‟ should be opened to verify if the received bids comply with required document guidelines (acknowledgement letter in prescribed format) and provides the required Earnest Money Deposit and Tender Fee.

Bids will be opened in the presence of bidders or their authorised representatives and the bids which do not comply with above mentioned guidelines for submission of „Envelope A‟ will be disqualified and rejected. If for any reason, the scrutiny of „Envelope A‟ is not completed then „Envelope A‟ shall be resealed in presence of authorised tender committee members and bidders / their authorised representatives and opened subsequently in their presence.

„Envelope B‟ of eligible bidders should be opened after due scrutiny of „Envelope A‟ as per the guidelines detailed in paragraph 3.7.

All received bids should be stored in a secure strong room. The strong room shall be sealed in presence of the tender committee and bids received should remain inaccessible until the formal date of bid opening.

An acknowledgement of receipt should be provided to all eligible and accepted bids. Additionally, rejected bids (if any) shall be notified to the bidder along with reasons for the rejection.

No interest money should be paid on the „Earnest Money Deposit‟ either to the highest bidder or to those bidders whose bids are rejected or those bids that do not emerge as the highest bid.

The validity of the offer / bid from the bidder should comply to the Bid Validity Period of 90 days as defined in the „Bid Document‟.

Once an offer is submitted by a bidder in the above sealed envelope, the offer cannot be withdrawn or revised downwards for any reason. In an event when the bidder withdraws or revises the bid downwards, the bid should be rejected and the Earnest Money Deposit from the bidder should be forfeited unconditionally.

In case of more than one bid received (in a sealed tender) are of the same value, i.e., in case of a tie, the tied bidders may be asked to participate in an Open Auction to resolve the tie among tied members. If any of the bidders is not willing to participate in the resultant open auction, then the bidding process should be cancelled and fresh bidding should be initiated.


3.6.2 E-Auction of Subject Property The procedure to conduct the e-auction of the subject property shall be drafted

in joint consultation with the e-auction service provider. However, the broad

guidelines to conduct the e-auction of subject property are given below:

AIL‟s existing IT platform (IT hardware, broadband connectivity, etc) or e-auction portal should be used to host the user interface of „E-Auction‟. Additionally, E-Auction service provider shall train the nominated team to managing the e-auction process.

In order to participate in the auction of subject property, prospective bidders should upload „Acknowledge Letter‟ and „Bid Form‟ on the auction portal as per time lines and procedure mentioned in the „Bid Document‟ using the login credentials provided in step 3.2 . Additionally, the receipt of „Earnest Money Deposit‟, as prescribed in the bid document should be uploaded by the prospective bidders.

Only those bidders should be considered to be eligible to participate in the e-auction process who upload the required document, EMD and comply with other guidelines of the „Bid Document‟ and „E-Auction‟ (if any).

In order to verify authenticity of bidder and ensure no alterations are made in bids received online, it should be mandatory for prospective bidders to use digital signatures while participating in e-auction of the subject property.

The Login credentials and Password generated for each prospective bidder (as mentioned in step 3.2) shall remain valid for a defined time period. Moreover, guidelines on methodology of placing bids using the e-auction portal should be provided to prospective bidders. Additionally, bidders whose application has been rejected should be notified.

The bidding process should commence on the specified date and time as mentioned in the „Bid Document‟.

Prospective buyers should log in onto the e-auction portal using the secured Login ID and Password shared earlier and place their bids as per the guidelines in the „Bid Document‟. The prospective buyer / bidder to ensure that each time during the e-auction they place a bid, it should comply with the Bid Validity Period of 90 days. The online bidding process will terminate as per the scheduled timelines.

E-auction service provider shall provide any required support to conduct a smooth and transparent e-auction of the subject property.

3.7 Bid Opening [In the event offline sealed bid process is followed] A tender committee should be nominated to open and evaluate all the bids received within the bid submission deadline. The bids should be opened in presence of the nominated committee and prospective bidders / their authorised


representatives as per the date and time mentioned in the „Bid Document‟. The key activities to be undertaken while opening bids are listed below:

All received bids should be removed from the secure strong room on the scheduled date of bid opening in the presence of the nominated committee.

„Envelope B‟ of all received bids should be opened in the presence of the nominated committee and prospective bidders / authorised representatives.

While prospective bidders / authorised representatives should be allowed to be present during the bid opening process, attendance to bid opening shall remain optional to prospective bidders. In case any bidder chooses not to be present, then the same will not be the basis for invalidating the bid opening process.

On the scheduled date, the nominated committee should only open the received bids and not declare the successful bidder. Selection and intimation of successful bidder shall be carried out as per the process detailed in paragraph 3.8.

A detailed „Bid Received Report‟, comprising of details of all the bids received along with the bid price received should be prepared and shared with appropriate authority within AIL.

The entire process shall be managed and overviewed in the presence of the nominated committee.

3.8 Selection And Intimation Selection of successful bidder amongst all the bids received during the bidding process should be undertaken as per the selection methodology and provisions detailed in the „Bid Document‟. Guidelines for selection and intimation of successful bid are detailed below:

After all the bids are opened, the received bids should be evaluated in accordance with the selection methodology detailed in the „Bid Document‟ in the presence of the nominated committee.

After determining the highest bidder, a detailed report on scoring of the successful bidder along with scores of all other bids received should be prepared.

A „Letter of Acceptance‟ should be issued to the highest bidder on receiving approval from appropriate authority within AIL.


4 Post Bidding Process

Post selection and intimation of highest bidder, procedures to consummate the transaction should be initiated. Key activities to be undertaken in the post bidding process are listed below:

Following the issue of „Letter of Acceptance‟, Earnest Money Deposit should be executed and adjusted against the total consideration of the bid.

Following the „Letter of Acceptance‟ being issued to the successful bidder, the interest free Earnest Money Deposit of other bidders should be returned within a reasonable time frame, as defined in the „Bid Document‟.

All „Earnest Money Deposits‟ should be returned to the unsuccessful bidders against their formal receipt.

All charges on account of obtaining necessary clearances or approvals (including but not limited to society charges, NOC charges, or any other cost and charges required for transfer of the said property in favour of the successful bidder.) should be undertaken by the bidder at its own cost and effort.

All such clearances or approvals shall be undertaken within the timelines specified in the „Bid Document‟. Any extension should generally be avoided. However, an extension may be granted in exceptional circumstances, subject to approval from appropriate authority within AIL.

Within a reasonable time of sharing copies of „Agreement of Sale‟ and „Sale Deed‟. Agreement to Sale should be executed with the successful bidder as per the timeframe specified in the „Bid Document‟.

The successful bidder should make intermediate payment(s), if any, as defined in the bid document on and before the execution of the Agreement to Sale.

In an event of any deviation from successful bidder, be it delay in payment timelines or the bidder retracting from the transaction after issue of „Letter of Acceptance‟, the following penalty charges should be levied on the bidder: o Delay in Payment – In case the successful bidder fails to adhere to

payment timelines, penalty charges, in form of interest, as mentioned in the „Bid Document‟ should be levied on the bidder.

o Successful Bidder pulling out of transaction – In case the successful bidder decides to pull out of the transaction, for whatever reason, the Earnest Money Deposit and all other intermediate payments made by the bidder (if any) should be forfeited.


o Successful Bidder‟s inability to conclude the transaction – In the event successful bidder is an individual (“Person”) and is unable to complete the sale of the said property as per the terms of the bid document for any such reason as the death of the Person, it shall be the responsibility of his / her legal heir / assignees (“Successor”) to adhere to the terms of the bid process and complete the sale process in accordance to the terms defined in the bid document. In case the Successor of the successful bidder decides to pull out of the transaction, for whatever reason, the Earnest Money Deposit and all other intermediate payments made by the bidder (if any) should be forfeited.

o Post selection of the successful bidder AIL shall approach AIL board / Union Cabinet of Government of India (“BOARD”) for approval for sale of the said property to the successful bidder. In the event BOARD decide adversely to not to go ahead with sale of the said property with the successful bidder for any reason, AIL shall return the EMD to such bidder along with the letter of cancellation of the bid.

In the event the sale process is stalled due to non-performance / default of the successful bidder or BOARD directive, AIL shall cancel the current bid process and shall initiate a fresh re-bid process for the said property(s) at a later date.

Within a defined timeframe and on payment of complete sale consideration, as described in the „Bid Document‟, „Sale Deed‟ should be executed with the successful bidder.

The „Sale Deed‟ shall be registered by the buyer at his/her own expense and effort within the stipulated regulatory guidelines. Appropriate support may be provided to the successful bidder in order to successfully consummate the transaction.

Physical handover of the subject property should be given to the successful bidder within a reasonable time period after execution of „Sale Deed‟. The physical handover of the property to the buyer should be done on an „As Is Where Is‟ basis or as described in the Bid Document.


X. DISPOSAL PLATFORM

Air India has decided to dispose off the Immovable Assets in a transparent manner

and has to follow the objective procedures while doing e-auction. CVC vide its

circular no. 010/VGL/035/161731 dated 12.01.2012 issued guidelines for compliance

quality requirements of e-procurement systems and advised all Ministries/

Departments/ PSUs to get their systems certified by DIT. DIT advocates STQC

certification of e-procurement system accordingly. (Annexure H)

Air India is considering to utilize the services of sole Government Company namely

Metal Scrap Trade Corporation Limited (MSTC) for e-Auction purposes. MSTC is a

Mini Ratna Category-I Schedule B PSU under Ministry of Steel setup on 9th

September, 1964. It offers a total web based solution for e-Sale through e-Auction.

MSTC‟s e-commerce portal is 128 bit secured socket layer encrypted and certified

by TCS. MSTC e-commerce portal is also STQC (DIT) certified.

The Buyer/Seller registers himself on MSTC e-commerce portal along with the

requisite details, e.g., PAN No., ITCC/STRC/Profession Tax RC, e-mail address,

Photograph, Registration Fee, etc. The system will generate unique User-ID and

Password for the bidder.

The process stated to be followed by MSTC as per the presentation made, on

14.05.2013 would be as under (for reference only):

eAuction

eAuction Bidding ProcessHosting of auction catalogue

showing lot details, terms & cond. And Starting & Closing Time

Physical Inspection by Bidder

Posting of Reserve Price and STA %age by Principal

Actual Bidding by Registered Bidders

Automatic Display of H-1 Bid / Bid History without Bidders Names

(Last 10 Bids)

Piece-meal improvement in Bids by Bidders (Downward Bidding

not permitted)Automatic improvements in

Bids by Bidders (By Specified Increment / Upto Specified

Limit)Automatic Extension of Closing

Time (08 min. gap between Last Bid & Closing Time)

On line Search of specific Item/Principal by Bidder


eAuction

eAuction Bidding Processcontd.

Auction closing time displayed separately for each lot

If no bid recd during last 08 minutes before closing time the

lot closes for bidding

Auction closes after all the lots close for bidding

Bid sheet can be generated showing lot wise details of the

auctionComplete Bid-History for each lot can be generated

Post e-Auction Steps

System compares H-1 Bid with Reserve Price

H-1 Bid >= RP

(Offer Accepted)

H-1 Bid < RP but

< > STA LIMIT

(Offer Accepted

Provisionally and

Referred to

Seller)

H-1 Bid < RP and

< STA Limit

(Offer Rejected)

Post e-Auction Steps

H-1 Bid > =Reserve Price

H-1 Bid automatically approved by system

Automatic issue of Sale Intimation Letter by email to the Bidder to submit EMD @”X”% within “Y” Days

Issue of Sale Order by email on receipt of EMD, advising Buyer to submit Balance Sale Value + Duties + Taxes

within “X” Days

Issue of Delivery Order after receipt of Balance Sale Value + Duties + Taxes

Lifting of Materials by the Buyer (Against Photo ID-Card)

Contd.


Post e-Auction StepsH-1 Bid < Reserve Price

But > STA Limit

Automatic Issue Of Intimation Letter by email

To the Bidder to submit EMD @ “X”% within “Y” Days

Offers referred to Principal for their consent

If approved, intimation letter

By email, Sale Order

Issued by email

If rejected, intimation letter

To Bidder.

Re-auction of the lots.

Contd.

Post e-Auction StepsContd.

If H-1 Bidder does not Pay EMD

Bidder Debarred

MSTC/Stock Holder

Reserves The Right

To Call Sealed Bids

With Required EMD

From All Participating

Bidders

Fresh e-Auction

e-Sale / e-Auction can

be conducted

with / without

Pre Bid EMD


Benefits Of e-Auction

LOCATION/BIDDERS PRESENCE NOT NEEDED

TARGET BIDDERS DIRECTLY NOTIFIED BY EMAIL

NATION-WIDE & ACTUAL USERS PARTICIPATE

ELIMINATES CARTELS

NO CONDITIONAL OFFERS POSSIBLE

WORKS ON “CASH-N-CARRY” CONCEPT

CURRENT/PAST BID HISTORY POSSIBLE (SALE POSSIBLE EVEN IF H-1 BIDDER DEFAULTS)

FASTER SALE REALISATION

RATES RECEIVED ARE 15%-20% MORE AS COMPARED TO TRADITIONAL MODES

SAVING OF TIME & MONEY ATTRACTS BIDDERS

ACTS AS DECISION SUPPORT MECHANISM

E-Auction platform will host the details of the immovable assets to be sold by the

Principal, its terms and conditions, auction starting and closing time and date,

Reserve Price, Pre Bid EMD, automatic display of H-1 Bid/Bid history without bidders

names, automatic improvements in Bids by bidders and automatic extension of

closing time (08 min. gap between Last Bid and Closing Time). The web based

system will automatically accept the H-1 Bid which is higher to the Reserve Price.

The system will automatically issue the sale intimation letter by e-mail to the

successful bidder alongwith the details of percentage amount and taxes to the

deposited within specified time/days. The system at the same time will sent the e-

mail to the unsuccessful bidders.

MSTC has a State of The Art data centre and does not outsource any of it services.

It has IBM make power 740 server, IPv6 compliant network system, individual

Firewall Server and e-mail Server and dedicated 30 Mbps leased line for round the

clock connectivity. All developments, upgradations, customization and maintenance

of software and backup facilities are down by in-house experts. MSTC has a disaster

recovery sites which is commission in Mumbai. A special point to point connection

between Kolkata and Mumbai keeps primary server and mirror server connected and

data get duplicated. There is 24 hours power back up and 24x7 manning of the

server to ensure undisrupted availability.


FIGURE: A TYPICAL e-AUCTION PROCESS FLOW

START Analysis of Spend

categories Determine Item

Auctionability

Procurement Block

/Unambiguous

Specification

Yes

1 2

Approval: E

Sourcing Provider

Develop

RFP/Conduct Pre

Qualification

Confirm E Auction

Event

No

Train Participants Conduct E Auction

4 5 3

6 7

Evaluation of Bids

8

No

Yes Requirements /

Expectation Met

Award

Material Exchange

END

11

9 10


ANNEXURE A


ANNEXURE B


ANNEXURE C


ANNEXURE D


ANNEXURE E


ANNEXURE F


Annexure G

MODEL RFP FOR MONETISATION

REQUEST FOR PROPOSAL FOR SALE OF REAL ESTATE PROPERTIES

OF AIR INDIA SITUATED

IN INDIA AND ABROAD


AIR-INDIA LTD PROPERTIES AND FACILITIES DEPARTMENT

[INSERT ADDRESS] [INSERT TELEPHONE NO, FAX NO]

RFP No:……………………………………… DATE:………..

REQUEST FOR PROPOSAL FOR SALE OF REAL ESTATE PROPERTIES OF

AIR INDIA SITUATED IN

INDIA AND ABROAD

AIR-INDIA LTD

PROPERTIES AND FACILITIES DEPARTMENT RFP No:…………………… DATE:………..

REQUEST FOR PROPOSAL FOR SALE OF REAL ESTATE PROPERTIES OF

AIR INDIA SITUATED IN

INDIA AND ABROAD

M/S………………………………………………………………………………

……………………….

……………………………………………………………………………………

………………………….

……………………………………………………………………………………

…………………………

……………………………………………………………………………………

…………………………

CONCERNED OFFICIAL:

…………………………………………………………………………

TELE NO:

……………………………………………………………………………………

…………

FAX NO:

……………………………………………………………………………………

………….

EMAIL ADDRESS:

…………………………………………………………………………………..


INDEX

S. No. CONTENTS Page No.

1. Section I- Definitions 58

2. Section-II Summary Of Bidding Information 59

3. Section-III Introduction 60

4. Section-IV Intention to Bid and Terms and Conditions 63

5. Section-V Bidding Document for Qualifying Bidders 67

6. Section-VI General Terms And Conditions of Bid Form 70

7. Appendix-I Format of Covering letter for Intention to Bid 75

8. Appendix –II Intention to Bid Document 77

9. Appendix-III Format for Power of Attorney 80

10. Appendix-IV Format of Non Disclosure Agreement 81

11. Appendix- V-Format of Covering Letter for Bid Form 86

12. Appendix-VI Bid Form 88

13. Appendix-VII Format of Acknowledgement Letter 90

14. Appendix-VIII Format of the Acceptance Letter 91

15. Annexure A- Details of Real Estate Properties of Air India 92

16. Disclaimer 93



RFP No:…………………… DATE:……….. Section- I

Definitions “Air India” means Air India Limited, duly incorporated under ________Act, having its registered office at __________and corporate office at __________. “Bid Form” means the document containing the Financial/ price bid submitted by Qualifying Bidders to Air India for purchase of Real Estate Properties. “Bid” means the financial/ price offer made by Qualifying Bidders in the Bid Form. “Bidders” means the persons mentioned in clause ….4.1.of sectionIV of this Request for Proposal, RFP No………… “Consultant” means DTZ………… “Data Room” means an online repository of documents pertaining to Real Estate Properties wherein all the documents and information comprising Confidential Information has been stored and uploaded for purpose of due diligence by Qualifying Bidders. “Earnest Money Deposit” means the money to be deposited for the purchase of Real Estate Properties at the time of filing the Bid Forms “Intention to Bid” means the document in which an expression of interest along with the all the other information is submitted for Air India to determine the Qualifying Bidders to submit the Bid Form for purchase of Real Estate Properties “Qualifying Bidders” means the Bidder who successfully qualify after submitting their “intention to Bid” and are eligible to submit the Bid Form and shall be provided login and password to access Data Room and upload their Bids in the Bid Form. “Real Estate Properties” means the properties mentioned in Annexure A of this RFP. “Reserve Price” means_____________ “RFP” means Request for Proposal, No___________ “Successful Qualifying Bidder” means the Qualifying Bidder whose Bid is accepted for purchase of Real Estate Property(ies) “Tender Cost” means the cost prescribed in clause 3.2 of Section III of this RFP


AIR-INDIA LTD


Section- II SUMMARY OF BIDDING INFORMATION

S.NO. Particulars Details

2.1 Name of the tender RFP for sale of the Real Estate Properties of AIR INDIA

2.2 Availability of the Request for Proposal (Hard Copy)

2.3 “Intention to Bid” Submission Date/Deadline

2.4 Declaration of Qualifying Bidders 2.5 Date and time for Site inspection

and Data Room

2.6 Pre Bid Conference date 2.7 Bid Form Submission Date/

Deadline

2.8 Place of opening of Bids 2.9 Time and date of opening of Bid

Form

2.10 Declaration of Successful Qualifying Bidder

2.11 Validity of the Bid/ Offer 2.12 Contact Person



RFP No:…………………… DATE:……….. Section- III

INTRODUCTION

3.1 Air India Limited, a national carrier desirous of monetizing its Real Estate Properties mentioned in Appendix-_______by way of sale of the said Real Estate Properties on “AS IS WHAT IS” and “AS IS WHERE IS BASIS”. Bidders who meet the eligibility criteria mentioned in the RFP may place their offer to purchase after perusing the RFP available in the AIR INDIA office situated at …………………………. (Insert Date) to (Insert Date) between (insert time) to (insert time). The RFP is also available on the AIR INDIA website___________. RFP may be downloaded for READ ONLY purpose.

3.2 Bidders are required to purchase the RFPs from the office of ___________by paying

the Tender Cost of Rs._____________ in favour of ______________payable at __________either through Demand Draft/ Bankers Cheque in favour of___________. Copies of the RFP are available at ________________

a. XXXXX b. XXXXX

Or

Bidders may be download the RFP’s from the website ___________by paying the RFP Fee at the portal. Kindly ensure to generate and retain a receipt of the payment of Tender Cost for submission of the same along with the Bid Form.

3.3 Bidding Structure and Selection Process

3.3.1 The bidding process shall be carried out by following two Bid system. Air India shall invite an “Intention to Bid” wherein Bidders shall provide the requisite information in the prescribed format which would enable Air India to determine the financial sufficiency and credit worthiness of bidders who shall be eligible to submit their Bids. The Bidders who satisfy the pre bidding qualification shall be termed as Qualifying Bidders. It is only Qualifying Bidders who shall be entitled to inspect the Site of the Real Estate Properties and access the Data Room for perusing the information in relation to the properties mentioned therein. Thereafter, the Qualifying Bidders shall be entitled and eligible to submit Financial bid / Price bid along with all the requisite information and annexures in the prescribed format

3.3.2 Air India Ltd. shall evaluate only those “Intention to Bids” and “Bid Forms”

which are received before the respective Bid Submission Date/ Deadline prescribed herein in the required formats and are complete in all respects and accordingly, any Intention to Bids or Bid Forms not conforming to the requirements contained herein shall be liable to be rejected.. Air India reserves the right to reject any Intention to Bid and/ or Financial Bid received from the Bidders and Qualifying Bidders respectively without assigning any reason whatsoever.


3.4 Bidders are requested to submit an “Intention to Bid” containing requisite

information along with, Power of Attorney (if required) and a Non Disclosure Agreement in the format annexed hereto as Appendix-____ in relation to their participation in the RFP. Intention to Bid shall determine the Qualifying Bidders who shall be eligible to participate in the Bid (financial) for the Real Estate Properties.

3.5 The Bidders may contact Mr. _______________between (Insert Date) to (Insert Date) between (insert time) to (insert time) for any queries and information required in relation to RFP and “Intention to Bid. (Tele:_________________)

3.6 The “Intention to Bid” along with the necessary information, Power of Attorney (if required) and Non Disclosure Agreement shall be uploaded on the website_______and/ or submitted to ___________in the AIR INDIA office situated at ………………………….on or before (Insert Date) between (insert time) to (insert time). The last date of submission of Intention to Bid is_________. The Qualifying Bidders shall be declared on ___________.

3.7 Only the Bidders who clear the pre qualification criteria under the “Intention to Bid” (“Qualifying Bidders”) shall be entitled to access the Site of Real Estate Properties and Data Room to peruse the necessary information for their decision making, submit the Bid Form and participate in the Bid.

3.8 NO REAL ESTATE AGENCIES/ BROKERS WILL BE ENTERTAINED.

3.9 The Real Estate Properties could be inspected by the Qualifying Bidders from

(Insert Date) to (Insert Date) between (insert time) to (insert time) in presence of AIR INDIA official Mr._________after seeking prior appointment/ registration from Mr. (Insert name), (insert address), (insert landline no.)

3.10 The Qualifying Bidders may access the Data Room from (Insert Date) to

(Insert Date) between (insert time) to (insert time) after seeking prior registration and may contact Mr. (Insert name), (insert address), (insert landline no.)

3.11 AIR India would be organizing a Pre Bid Conference

AIR India would send invitation to the Qualifying Bidders inviting them to a pre bid conference to discuss the methodology of the bidding process and shall also answer queries of Bidders for the Real Estate Properties and the documentation thereof. (WHETHER ANY DATE IS TO BE GIVEN)

3.12 Bid Form Submission Date: The Bid Form Along with the necessary annexures

shall be uploaded by Qualifying Bidders the website ___________and/ or submitted by hand or by registered post at _________________ on or before________________before (insert time).

3.13 The financial bids in the Bid Form in relation to the Real Estate Properties shall

be opened in presence of ______________on ___________at _________________.


3.14 The Validity of Offer for the Successful Qualifying Bidder and the other three

successful bidders is _____



RFP No:…………………… DATE:………..

Section- IV INTENTION TO BID TERMS AND CONDITIONS

The Bidders shall complete all formalities and requirements of the tender process and file complete bid details and other tender documents required and stipulated in this RFP. The Bidders shall abide by all the terms and conditions contained in the RFP, Intention to Bid and in the event that Intention to Bid is being filed by entities, the resolutions/ authorities/power of attornies in favour of the signatory must be annexed certifying that the signatory representing such entity is duly authorized to commit and bind the entity to the intention to Bid, Bid Form, RFP and its contents thereof.

4.1. Eligible Bidders 4.1.1. The offer is open for individuals, government departments, institutions,

banks, corporate houses, in the public and private sectors, subject to applicable laws and regulations. No Bidder shall be represented by any broker or agent. Intention to Bid cannot be submitted by a Consortium unless otherwise agreed and circulated by AIR INDIA in writing.

4.1.2. Persons Resident Outside India may also participate in the Bids subject to compliance and applicability of Foreign Exchange Management Act, 2000 and its rules and regulations, amended from time to time.

4.1.3. The Bidders should submit a Power of Attorney and Non Disclosure Agreement and as per the format enclosed at Appendix-III and Appendix-IV respectively authorizing the signatory of the Intention to Bid to commit the Bidder. The Power of Attorney is not required to be submitted in case of Bids submitted by individuals in their own independent capacity.

4.2. Conflicts of Interests

4.2.1. A Bidder shall not have any conflicts of interests with regard to submission of their bids and performance of the Scope of Services. Any applicant found to have such conflicts of interests, at any time, shall be liable to be disqualified.

4.2.2. Without limitation on the generality of the foregoing, the Bidders and any of

its associates shall be considered to have a conflict of interests and shall not be selected under any of the circumstances as set forth below.

4.2.3. The Bidders shall not take up any assignment that by its nature will result in

conflict with the Air India business.

4.3. Intention to Bid: Shall contain covering letter in the format provided in Appendix I herein and all the necessary information contained in Appendix-II, Appendix III and Appendix-IV and supporting documents relied upon by the Bidder.

4.4. Preparation of Intention to Bid and Bid For


4.4.1. Language: The Intention to Bid shall be in English Language only. 4.4.2. Currency: All prices shall be expressed in Indian Rupees only.

4.5. Validity of the Intention To Bid:

Intention to Bid shall remain valid for a period ____ (______) days as non responsive, without any correspondence.

4.6. Format and signing of Intention to Bid: 4.6.1.1. The Bidders shall prepare one (1) original and one (1) duplicate of the

documents comprising the Intention to Bid. In the event of any discrepancy between the original and duplicate Intention to Bid, the original would be considered for the evaluation purpose.

4.6.1.2. The Intention to Bid shall be typed or written in indelible ink and the Bidders shall initial each page. All the alterations, omissions, additions, or any other amendments made to the Intention to Bid shall be initialed by the person(s) signing the Intention to Bid.

4.7. Submission of the Intention to Bid:

Intention to Bid Document and annexures in accordance with the instructions to Bidders should be Uploaded on the website________and/or delivered and deposited in sealed envelope written on top “Intention to Bid For RFP_________”in the tender box at the address_____________ on or before ________(insert date) by_______(insert time). The offers should be made strictly as per the formats enclosed. 4.7.1. Bidders sending their Intention to Bid by mail/postal address will do so

solely at their own risk and Air India will not be responsible for any loss in transit or postal delay.

4.7.2. Intention to Bid would be opened on ________ at _______ Hrs or any other date informed by Air India to the Bidders at the address to be decided by Air India in the presence of Bidders or their representative, if they choose to be present.

4.8. Dead line for submission of Intention to Bid: The last date of submission of

Intention to Bid is as indicated in “Introduction” Chapter and Clause 4.7 above.

4.9. Extension of deadline for submission of Intention to Bid: Air India, at its discretion, may extend the deadline for submission of Intention to Bid by issuing amendment to tender notice in news papers and also details uploaded in its website........................., which will be intimated to the Bidders, in which case all rights and obligations of Air India and Bidders will thereafter be subject to the deadlines as extended.

4.10. Late submission of Intention to Bid: Intention to Bid received from the Bidders

after the scheduled time will not be accepted by Air India, under any circumstances. Air India will not be responsible for any delay due to postal service or any other means.


4.11. Incomplete Intention to Bid: all incomplete Intention to Bid submitted with qualifying condition or with conditions at variance with the terms and conditions of RFP are liable to be rejected.

4.12. Modifications and withdrawal of Intention to Bid: Intention to Bid once

submitted will be treated as final and no further modifications will be entertained or discussed unless otherwise specified by Air India to all the Bidders.

4.13. Further Information: Air India shall have right to seek any information other

than provided herein for the purpose of evaluation of the Intention of Bid of a Bidder.

4.14. Process of Selection of the Intention of Bid and Qualifying Bidders for

submitting their Bids

(Insert the process) 4.15. Opening of the Intention to Bid: the Intention to bid shall be opened and

declared on _________at _____ hrs at the office complex _________________. 4.16. Only the Qualifying Bidders shall have right to access the site and Data Room and

shall be provided necessary passwords to access the Virtual Data Room.

4.17. Decision of Air India: in case of any issue or doubt regarding the Intention to Bid, decision of Air India shall be final and binding.

4.18. Amendment of Bidding Documents:

4.18.1. At any time prior to the deadline for submission of Intention to Bid, the Air India may for any reason, whether at his own initiative or in response to a clarification requested by a prospective Bidder, amend this RFP / bidding documents by issuing Addendum.

4.18.2. Any Addendum thus issued shall be part of this RFP / bidding document

and shall be communicated to all participants of the Bidding documents. Prospective Bidders shall acknowledge receipt of each Addendum in writing.

4.18.3. To afford prospective Bidders reasonable time, in which to take an

Addendum into account in preparing their bids, the Air India Ltd. may extend as necessary the deadline for submission of bids, in its sole discretion.

4.19. Right to cancel the RFP: Air India reserves the right to accept or reject any or all

the Intention to Bid without assigning any reason whatsoever. Air India does not bind itself to accept the Intention to Bid or any bid and reserves the right to reject all or any Intention to Bid or cancel the RFP without assigning any reason whatsoever. Air India also has the right to re-issue the RFP without the Bidders having the right to object to such re-issue.


4.20. Abandonment of RFP: Air India may at its discretion abandon the process of

monetisation of Real Estate Properties any time before notification of Qualifying Bidders or award.



RFP No:…………………… DATE:………..

Section- V BIDDING DOCUMENT FOR QUALIFYING BIDDERS

The Qualifying Bidders who qualify the Pre Qualification, namely “Intention to Bid” criteria shall complete all formalities and requirements of the tender process and file complete Bid Form and all the information mentioned thereto and other tender documents required and stipulated in this RFP. The Qualifying Bidders shall abide by all the terms and conditions contained in the RFP and sign the Bid Form and in the event that Bid Form is being filed by entities, the resolutions/ authorities/power of attorney (ies) in favour of the signatory must be annexed certifying that the signatory representing such entity is duly authorized to commit and bind the entity to the Bid Form, RFP and its contents thereof. 5.1 Content of Bidding Document:

5.1.1Envelope A- Upload/ post/ hand deliver the Envelope A 5.1.1.1 Covering letter and Acknowledgement Letter in accordance with the

format attached hereto and annexed herewith as Appendix V and Appendix VII.

5.1.1.2 Earnest Money Deposit of Rs________ in form of Pay Order/ Demand Draft in favour of “_________”

5.1.1.3 Tender Fee: Non Refundable Tender Fee of Rs._______ in form of Pay Order/ Demand Draft in favour of “_________”

5.1.2 Envelope B Upload/ post/ hand deliver the Envelope B

Bid Form complete in all respects along with duly executed Acceptance Form in accordance with the format attached hereto and annexed herewith as Appendix VI and Appendix VIII.

5.1.3 Envelope C- post/ hand deliver

Both Envelope A and B shall be placed in Envelope C and delivered either in person or by recorded delivery post at the address mentioned in the “Bid Form” within the bid submission deadline/ date. (Only in case of post or hand delivery)

5.2 Preparation of the Bid Forms:

5.2.1 Language: The Bid Forms shall be English Language only. 5.2.2 Currency: All prices shall be expressed in Indian Rupees only. 5.2.3 Validity of the Bid Form:

Bid Forms shall remain valid for a period ____ (______) days as non responsive, without any correspondence.

5.2.4 Format and signing of Bid Form:


5.2.4.1 The Qualifying Bidders shall prepare one (1) original and one (1) duplicate of the documents comprising the Bid Form. In the event of any discrepancy between the original and duplicate Bid Form, the original would be considered for the evaluation purpose.

5.2.4.2 The Bid Forms shall be typed or written in indelible ink and the Qualifying Bidders shall initial each page. All the alterations, omissions, additions, or any other amendments made to the Bid Forms shall be initialed by the person(s) signing the Bid Form.

5.3 Submission of the Bid Form:

5.3.1 Bid Forms sealed in accordance with the instructions to Qualifying Bidders should be uploaded on the website__________ and/ or delivered and deposited in tender box at _________________(insert address) on or before________(insert date, day) by ________(insert time). The offers should be made strictly as per the formats enclosed.

5.3.2 Qualifying Bidders sending their Bid Forms by mail/ post will do so solely at

their own risk and Air India will not be responsible for any loss in transit or postal delay.

5.3.3 Bid Forms would be opened at________(insert place) on ________(insert day and date) at _______ Hrs (insert time) or any other date informed by Air India to the Qualifying Bidders at the address to be decided by Air India in the presence of Qualifying Bidders or their representative, if they choose to be present. Envelops A containing EMD shall be opened first. Envelop B of only those Qualifying Bidders will be opened whose Demand Drafts for EMD are found to be in order Incomplete Bid Forms submitted with qualifying conditions or with conditions at variance with the Terms and Conditions of the RFP will be liable to be rejected.

5.4 Dead line for submission of Bid Form: The last date of submission of Bid Form is

as indicated in “Introduction” Chapter and clause 5.2.5 above.

5.5 Extension of deadline for submission of Bid Forms: Air India, at its discretion, may extend the deadline for submission of Bid Forms by issuing amendment to tender notice in news papers and also details uploaded in its website........................., which will be intimated to the Qualifying Bidders, in which case all rights and obligations of Air India and Qualifying Bidders will thereafter be subject to the deadlines as extended.

5.6 Late submission of Bid Forms: Bid Forms received after the scheduled time will not be accepted by Air India, under any circumstances Air India will not be responsible for any delay due to postal service or any other means.

5.7 Incomplete Bid Form: All incomplete Bid Forms submitted with qualifying condition or with conditions at variance with the terms and conditions of RFP are liable to be rejected.


5.8 Modifications and withdrawal of Bid Form: Bid Forms once submitted will be treated as final and no further modifications will be entertained or discussed unless otherwise specified by Air India to all the Qualifying Bidders.

5.9 Bidding Process (Insert the Process)

5.10 Opening of the Bid Form: the Bid Forms shall be opened on _________at _____ hrs at

the office complex _________________. 5.11 Decision of Air India: in case of any issue or doubt regarding the Bid Form and RFP,

decision of Air India shall be final and binding. 5.12 Right to cancel the RFP: Air India reserves the right to accept or reject any or all

the offers without assigning any reason whatsoever. Air India does not bind itself to accept the highest bid or any bid and reserves the right to reject all or any bid or cancel the Tender without assigning any reason whatsoever. Air India also has the right to re-issue the RFP without the Qualifying Bidders having the right to object to such re-issue.

5.13 Abandonment of RFP: Air India may at its discretion abandon the process of

selection of Successful Bidder for Real Estate Properties any time before notification of award.



RFP No:…………………… DATE:………..

Section- VI GENERAL TERMS AND CONDITIONS OF BID FORM

6.1. Earnest Money Deposit

6.1.1. EMD shall be Rs. _______ for Qualifying Bidder’s quoting for one Real Estate Property. For more than one Real Estate Property, the Qualifying Bidders shall have to submit EMD _____ for each propertyseperately.

6.1.2. EMD of the Successful Qualifying Bidder shall be adjusted against the sale consideration of the Relevant Real Estate Property.

6.1.3. The EMD has to be paid by way of a crossed Demand Draft drawn on any scheduled or nationalized bank in favour of “____________” and payable at __________. No interest will be payable on the EMD.

6.1.4. EMD received from unsuccessful Qualifying Bidders would be returned within a period of ____ (_____) days from the date of declaration of the Successful Qualifying Bidder for the Real Estate Property. However, the AIR INDIA may retain the Earnest Money Deposit of top three Qualifying Bidders upto _____(___) months from the date of opening of the Bids.

6.1.5. The EMD of the Successful Qualifying Bidder shall be automatically adjusted towards sale consideration. In case the Bid is accepted and the Successful Qualifying Bidder refuses / fails to make further payment towards the balance sale consideration, the EMD shall be forfeited without prejudice to the rights of Air India to claim such further damages in this regard without further reference to the Successful Qualifying Bidder.

6.2. Reserve price

The Reserve Price for sale of Air India Real Estate Properties has been mentioned in “Annexure-A”.

6.3. Eligible Qualifying Bidders

6.3.1. The offer is open for Qualifying Bidders, subject to applicable laws and regulations. No Qualifying Bidder shall be represented by any broker or agent. Bids cannot be submitted by a Consortium unless otherwise agreed and circulated by AIR INDIA in writing.

6.3.2. Persons Resident Outside India may also participate in the Bid subject to compliance and applicability of Foreign Exchange Management Act, 2000 and its rules and regulations, amended from time to time.

6.3.3. The Qualifying Bidders should ensure that Power of Attorney in Appendix –III and Non Disclosure Agreement in Appendix-IV subsist till the end of the


Bidding process upto consummation of the transaction of sale of Real Estate Properties..

6.4. Site visit

6.4.1. It is desirable that each Qualifying Bidder submits the Bid after visiting the Real Estate Property and ascertaining for themselves the location, surroundings and any other matter considered relevant to them. Bidders may inspect the Real Estate Assets at their own cost.

6.4.2. For the purpose of inspection of the Real Estate Properties, Qualifying

Bidders may contact at the following address: XXXXXXXX XXXXXXX XXXXX XXX XX

6.5. Data Room visit

The documents relating to the Real Estate Property as may be available would be provided for inspection by prospective Qualifying Bidders at the office of the ______________ at the address mentioned at 6.5 above. Or The Data Room is a virtual Data Room, which could be accessed by Qualifying Bidders at the website_____________. The Data Room could be accessed between ______________to ___________________by using access codes or password which shall be provided by Air India upon registration of Qualifying Bidders on the website_______.

6.6. Due diligence by Qualifying Bidders

6.6.1. The Qualifying Bidders may carry out their own due diligence in respect of the Real Estate Property (ies). A Qualifying Bidder shall be deemed to have full knowledge of the condition of the Real Estate Property he/ it is interested in, relevant documents, information, etc. whether the Qualifying Bidders actually inspects or visits or verifies or not.

6.6.2. The Qualifying Bidders shall be deemed to have inspected and approved the

Real Estate Property(ies) to their entire satisfaction and for the purpose, the Qualifying Bidders may, in their own interest and at their own cost, verify the area of land and buildings and any other relevant information before submitting the Bids. It shall be presumed that the Qualifying Bidder has satisfied himself/herself about the title documents pertaining to the Real Estate Properties, names, descriptions, particulars, quantities, qualities, specifications, measurements, boundaries and abuttal's of the Real Estate Properties and that the Qualifying Bidders concurs or otherwise admits the identity of the Real Estate Properties purchased by him/her notwithstanding any discrepancy or variation, by comparison of the description in the particulars of the Real Estate Properties and their condition. Conditional Bids will not be accepted and will be summarily rejected.


6.7. It would be deemed that by submitting the Bid, the Qualifying Bidder has:

6.7.1. Made a complete and careful examination of the Real Estate Properties and has satisfied himself/ itself of all the relevant and material information in relation to the Real Estate Properties.

6.7.2. Received all relevant information required for submission of the Bid Forms either from Air India or from his own due diligence.

6.7.3. Understood that he would have no recourse to Air India post transfer of ownership rights of the concerned Real Estate Property.

6.8. Pre Bid Conference Air India shall organize a pre bid conference and invite all Qualifying Bidders to discuss the bidding process and formalities involved in the RFP process. It shall also address all the queries and questions of Qualifying Bidders who are interested in submitting Bid Forms for placing their Bids on the respective Real Estate Properties mentioned in the RFP.

6.9. Evaluation of Bid Forms of Qualifying Bidders

6.9.1. After Opening of Bid Forms, Air India would carry out the evaluation of the Bids. Air India, after analysing the bids and discussions thereof, will declare the Successful Qualifying Bidder within the date mentioned in the Introduction Letter. In the event of any change to aforesaid date, the same will be notified to the Qualifying Bidders by e-mails / post / fax.

6.9.2. In the event two or more Qualifying Bidders offer equal price for the relevant Real Estate Property, the concerned Qualifying Bidders would be invited for negotiations and the Qualifying Bidder who offers the highest bid post negotiations would be declared as the Successful Qualifying Bidder.

6.10. Validity of Bids

Bid shall remain valid for a period not less than ______ Days from the Bid Submission Due Date (Bid Validity Period). However, Air India, at its own discretion, may require the Qualifying Bidders to extend the validity for such period as may deem appropriate by Air India. Air India reserves the right to reject any Bid Form, which does not meet this requirement.

6.11. Payment Schedule

6.11.1. ________ of the sale consideration (including the EMD) shall be deposited with Air India _______________ In the event of any change in aforesaid date, the same will be notified to the Successful Qualifying Bidder(s) by e-mail.

6.11.2. The balance amount i.e., ____________ of the sale consideration is to be paid at

the time of completion of finalization of the legal formalities but before the execution of documents for effecting transfer of ownership. The Agreement to Sell and/ or Conveyance Deed shall be executed only after the remaining balance sale consideration amount is credited into Air India’s account.


6.11.3. All taxes/duties/levies, etc. and expenses, if any as applicable and related to the sale of the Real Estate Property(ies) on offer, shall be entirely paid by the purchaser/Successful Qualifying Bidder(s).

6.12. Default in payment by the Successful Qualifying Bidder

In case the sale consideration is not paid as specified in Section 6.11 by the Successful Qualifying Bidder(s), the sale of the relevant Real Estate Property (ies) to the concerned Successful Qualifying Bidder(s) would stand cancelled and the Earnest Money Deposit and subsequent payment made, if any, by the Successful Qualifying Bidder(s) will automatically stand forfeited.

OR In case there is a delay in payment of the sale consideration as specified in Section 6.11 by the Successful Qualifying Bidder(s), Air India may at its own discretion charge interest on unpaid consideration at the rate of ____% till such time the consideration remains unpaid.

6.13. Bidder withdrawing after being declared successful: In the event that Successful Qualifying Bidder decides to withdraw from the contract or agreement at any time before the consummation of the entire sale transaction for the Real Estate Property (ies), including execution and registration of sale deed for such property (ies) for any reason whatsoever, Air India shall have right to forfeit the Earnest Money deposited and all the other payments made by the Successful Qualifying Bidder to Air India.

6.14. Consents and Approvals:

All the approvals, consents, licenses, permissions required for effectively transferring the Real Estate Property (ies) to the Successful Qualifying Bidder shall be responsibility of the Successful Qualifying Bidder, provided however, Air India shall be responsible to provide all the relevant internal approvals/ permissions/ consents on which Air India has control, power and necessary authority to Successful Qualifying Bidder.

6.15. Conveyance and transfer of title of Real Estate Property to the Successful

Qualifying Bidder Subject to completion of all terms and conditions of the RFP and other document or agreement entered into between Air India and Successful Qualifying Bidder for consummation of sale of the relevant Real Estate Property(ies) and production of evidence of compliances by the Successful Qualifying Bidder to Air India within _______of declaration of Successful Qualifying Bidder or execution of agreement to sell, whichever is later, Air India shall execute Sale Deed(s)/Lease Deed(s) in favour of Successful Qualifying Bidder, provided however, execution costs and formalities including proper documentation and registration shall be sole responsibility of the Successful Qualifying Bidder and all the expenses including stamp duty implications or other taxes, duties, cess, charges or imposts in relation thereto, including legal expenses shall be borne by the Successful Qualifying Bidder.

6.16. Possession/ delivery of Property


6.16.1. Air India would endeavour on a best effort basis to complete the documentation and conveyance in respect of the relevant Real Estate Property in favour of the Successful Qualifying Bidder/Purchaser within ……….. days of making the ……….% payment of the sale consideration as provided in Clause 6.11.

6.16.2. In case the sale consideration is not paid as specified in Clause 6.10 of this RFP by the Successful Qualifying Bidder /Purchaser, the sale of the Real Estate Property(ies) to the concerned Successful Qualifying Bidder/ Purchaser would stand cancelled and the Earnest Money Deposit and subsequent payment made, if any, by the Successful Qualifying Bidder/ Purchaser will automatically stand forfeited.

6.17. Force Majeure Air India shall not be liable for any failure or delay in performance due to any cause beyond their control including fires, floods, strikes, go-slow, lock-out, closure, dispute with staff, dislocation of normal working conditions, war, riots, epidemics, political upheavals, Governments actions, civil commotion, breakdown of machinery, shortage of labour acts, demand or otherwise or any other cause or conditions beyond the control of aforesaid causes or not and the existence of such cause or consequence may operate at the sole discretion of Air India to extend the time of performance on the part of Air India by such period as may be necessary to enable Air India to effect performance after the cause of delays will have ceased to exist. The provisions aforesaid shall not be limited or abrogated by any other terms of the contract whether printed or written.

6.18. Conflicts of Interests 6.18.1. An Qualifying Bidder shall not have any conflicts of interests with

regard to submission of their Bids and performance of the Scope of Services. Any applicant found to have such conflicts of interests, at any time, shall be liable to be disqualified.

6.18.2. Without limitation on the generality of the foregoing, the Qualifying Bidders and any of its associates shall be considered to have a conflict of interests and shall not be selected under any of the circumstances as set forth below.

6.18.3. The Qualifying Bidders shall not take up any assignment that by its nature will result in conflict with the Air India business.

6.19. Governing laws/jurisdiction

This transaction shall be governed by the laws of India and all disputes arising out of the process shall be subject to the exclusive jurisdiction of the courts at ________, India.



RFP No:…………………… DATE:……….. Appendix-I

Format of Covering Letter for Intention to Bid (Letter head of the Bidder)

(full Postal Address of the Bidder,) (Telephone No of the Bidder,)

(Fax No. and Email ID of the Bidder) (Upload on the website______ and/ or hand deliver/ post to Air India)

Date: Air India Ltd. (Insert Address) Kind Attn: Subject: Bid for purchase of Real Estate Properties of Air India Ltd. Sir, Being duly authorized to represent and act for and on behalf of _____________(herein the Bidder), and having studied and fully understood all the information provided in the Request for Proposal for sale of Real Estate Properties, RFP No____________(“RFP”), the undersigned hereby apply as a Bidder for the purchase of Real Estate Properties of Air India according to the terms and conditions of the Request for Proposal for sale of Real Estate Properties of Air India, RFP No_______ hereby express my/our “Intention to Bid” for the Real Estate Properties contained in the RFP .

Or,

I, name of the Bidder, address of the Bidder, s/o, do hereby confirm that having studied and fully understood all the information provided in the Request for Proposal for sale of Real Estate Properties RFP No____________(“RFP”), the undersigned hereby apply as a Bidder for the purchase of Real Estate Properties of Air India according to the terms and conditions of the Request for Proposal for sale of Real Estate Properties of Air India, RFP No_______ hereby offer express my/ our “Intention to Bid” for the Real Estate Properties contained in the RFP.

The intention to Bid Form along with Power of Attorney (if required) the Non Disclosure Agreement duly signed and complete in all respects is annexed herewith for your reference and perusal. The name of the concerned official who could be contacted for further information and details is mentioned herein:

Name of the Person/s: Address Phone No Fax No. :

1. This Intention to Bid is made with full understanding that:


a. Air India reserves the right to reject or accept any Intention to Bid, modify/ cancel the process, and/or reject all or any of the Intention to Bids.

b. Air India shall not be liable for any of the above actions and shall be under no obligation to inform the Bidders of the same.

c. The Bidder is submitting the information to qualify to submit financial bid or price bid in the Bid Form for purchase of Real Estate Properties and is not bidding in collusion or for the benefit of any other party.

2. I/We, the undersigned declare the statements made, and the information provided in

the duly completed Intention to Bid forms enclosed are complete, true and correct in every aspect.

3. I/We have read the terms and conditions of Request for Proposal for sale of RFP and am/are willing to abide by them unconditionally.

Name__________________ For and on behalf of _______________________ (Name of Bidder) Enclosures:-

a. Intention to Bid b. Power of Attorney c. Non Disclosure Agreement d. Other relevant Information to be provided by Bidder



RFP No:…………………… DATE:………..

APPENDIX-II INTENTION TO BID DOCUMENT

(Upload on the website______ and/ or hand deliver/ post to Air India) Bidders are obligated to submit the following details in the below mentioned format with all the requisite enclosures, which shall be submitted in Envelope -___Intention to Bid, Request for Proposal, RFP No………………. S. No. Particulars Annexure

1. Name of the Bidder

2. Nationality

3. Brief description of the Bidder and its business/ profession

4. Address of the Bidder

5. Business/ Profession ( details of the same)

6. Status of the Bidder

7. In case of entity: details such as date of incorporation, business undertaken, commencement of business operations, etc.

8. Resident/Non Resident/ NRI/PIO

9. Compliance with provisions of FEMA for remittance (where applicable)

10. Net worth of the Bidder

11. Tax returns of the Bidder for 5 years immediately preceding the last financial year.

12. Attested copies of Bank statements of the past three financial years.

13. Gazette officer certified Copy of PAN Card.

14. Gazette officer certified Copy of Aadhar Card.

15. Valid sales tax registration no.

16. Valid service tax registration no.


17. Name of the concerned/ authorized representative.

18. Telephone No.

19. Fax No.

20. Email Address.

We further acknowledge and agree that: -

i. In case my/our Intention to Bid is accepted, we shall comply with all the terms and conditions of the RFP and perform the obligations thereunder.

ii. This offer under the Intention to Bid is valid for a period of ........... days from the Bid Submission Date or such extended date as may be determined by ................

iii. I/We have read and understood the terms and conditions of the Request for Proposal for sale of Real Estate Properties RFP No____________ and hereby unequivocally and unconditionally accept the same.

iv. The decision of ...............concerning the Intention to Bid shall be final and binding on us.

v. I/We have made this bid in our individual capacity on the basis of the information provided to us and the due diligence carried out by me/us.

vi. I/We agree and confirm that AIR INDIA has right to terminate and cancel our Intention to Bid without any interference by me/us till such time period the Intention to Bid remains unaccepted.

vii. We confirm and agree that the sale is on “As is where is Basis” and we shall have no recourse on AIR INDIA for deficiency in the documents or title in the property(ies).

viii. I/We further undertake that I am not subject to any litigation or court order or winding up proceedings which would limit or restrict my right to undertake and consummate the sale transaction in the event I/We are declared as Successful Bidder.

ix. That my/ our net worth for consecutive previous five financial years immediately preceding the date of RFP is positive and the same is certified by our Chartered Accountant.


We hereby declare that the information stated hereinabove is complete and correct and any error or omission therein, accidental or otherwise, will be sufficient justification for .............. to reject my/our Bid and/or to cancel the award of sale of the property(ies). ___________________ Signature of the Bidder Full Name Designation (as applicable) Name of the Company (as applicable) Address Date



RFP No:…………………… DATE:……….. Appendix-III

FORMAT FOR POWER OF ATTORNEY FOR SIGNING INTENTION TO BID AND BID FORM

(On a Stamp Paper of relevant value) (Upload on the website______ and/ or hand deliver/ post to Air India)

POWER OF ATTORNEY Know all men by these presents, we ………………………….. (name and address of the registered office) do hereby constitute, appoint and authorize Mr. / Ms ………….. (name and address of residence) who is presently employed with us and holding the position of ……………………….. as our attorney, to do in our name and on our behalf, all such acts, deeds and things necessary in connection with or incidental to our Intention to Bid and Bid Form for the purchase of the Real Estate Property (ies) mentioned in the Request for Proposal for sale of Real Estate Properties RFP No____________ including signing and submission of all documents including Intention to Bid and Bid Form and representing us in all matters before Air India, and generally dealing with Air India in all matters in connection with our Intention to Bid and Bid Form. We hereby agree to ratify all acts, deeds and things lawfully done by our said attorney pursuant to this Power of Attorney and that all acts, deeds and things done by our aforesaid attorney shall and shall always be deemed to have been done by us. For ....................... (Signature) (Name, Title and Address) Accepted --------------- (Signature) (Name, Title and Address of the Attorney) Note: i. The mode of execution of the Power of Attorney should be in accordance with the

procedure, if any, laid down by the applicable law and the charter documents of the executant(s) and when it is so required the same should be under common seal affixed in accordance with the required procedure.

ii. Also, wherever required, the Applicant should submit for verification the extract of the charter documents and documents such as a resolution/power of attorney in favour of the person executing this Power of Attorney for the delegation of power hereunder on behalf of the Applicant.

iii. For a Power of Attorney executed and issued overseas, the document will also have to be legalised by the Indian Embassy and notarised in the jurisdiction where the Power of Attorney is being issued.



RFP No:…………………… DATE:………..

Appendix-IV FORMAT OF NON DISCLOSURE AGREEMENT

(On a Stamp Paper of relevant value) (Upload on the website______ and/ or hand deliver/ post to Air India)

THIS NON-DISCLOSURE AGREEMENT (“Agreement”) is made the ______ day of _______________ 2013 by and between: Air India Limited, having its office at ______________ (hereinafter referred to as the “Disclosing Party”) which expression shall unless repugnant to the context shall mean and include its successors and permitted assigns of the First Part, AND ___________a company incorporated under the Companies Act, 1956 having its registered office at______________ (hereinafter referred to as the “Receiving Party”) which expression unless repugnant to the context shall mean and include its successors and permitted assigns of the Second Part. OR ___________a partnership firm duly registered under Indian Partnership Act, 1932, having its office at______________ (hereinafter referred to as the “Receiving Party”) which expression unless repugnant to the context shall mean and include its successors and permitted assigns of the Second Part OR in case of an individual s/o/d/o) _______ __________( resident of _________) (hereinafter referred to as the “Receiving Party”) which expression unless repugnant to the context shall mean and include its legal heirs, executors, successors, official receiver, of the Second Part. The Disclosing Party and the Receiving Party shall hereinafter be collectively referred to as Parties WHEREAS:

A. The Disclosing Party has invited the Receiving Party to bid for Real Estate

Properties under Request for Proposal for Real Estate Properties, RFP

No.______________ (hereinafter defined as “RFP”).

B. The Disclosing Party may disclose Confidential Information to the Receiving

Party and the Receiving Party may have access to the Confidential Information of

the Disclosing Party.

C. The Receiving Party has agreed to provide an undertaking under this Agreement

to keep all the information, documents and discussion relating to the bidding

process confidential.

NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: - 1) In this Agreement the term "Confidential Information" means:

(a) all information relating to the RFP which is obtained, whether in writing, pictorially or in machine readable form in connection with the RFP, including but without limitation, bidders lists (potential or actual), other bid related information, title documents, specifications, descriptions,


approvals, file information, notings on the file, registration details and all other information shared by Air India in relation to the Real Estate Properties mentioned in the RFP and also any other information shared during the course of sale of Real Estate Properties; and

(b) this Agreement and all other information, documents discussions relating to the bidding process that have taken place or shall take place along with the content of the discussions between the Parties herein;

but does not include information which becomes publicly available, other than as a result of a breach of this Agreement, or becomes lawfully available to the Receiving Party from a third party free from any confidentiality restriction or any information required to be disclosed under any relevant law or any order of court or by any stock exchange.

2) The Receiving Party shall not use the Confidential Information for any purpose other than for the evaluation of the property for the purpose of bidding in the RFP and even for other commercial and revenue generating purposes. The Receiving Party shall treat the Confidential Information with at least the same degree of care and protection as it would use with respect to its own information.

3) The Receiving Party shall not disclose any of the Confidential Information to any person other than the persons approved by the Disclosing Party, nor shall it use the Confidential Information for any purpose other than that stated in clause 2 hereof without the prior written consent of the Disclosing Party.

4) The Receiving Party shall not disclose, reproduce, forward or disseminate the

Confidential Information on the bidding process to any other person except its legal and financial advisors.

5) The Receiving Party shall not copy or reproduce in any way (including without limitation, store in any computer or electronic system), other than for the purpose of the RFP, any Confidential Information or any documents containing Confidential Information without the Disclosing Party’s written consent.

6) The Receiving Party will notify the Disclosing Party in writing immediately upon the occurrence of any unauthorized release or other breach of this Agreement.

7) The Receiving Party shall take all necessary steps and precautions to protect the Confidential Information against any unauthorised access. The Receiving Party shall limit the use of and access to the Disclosing Party’s Confidential Information to the Receiving Party’s employees involved in discussions relating to the RFP on a “need to know basis” and shall cause such employees to comply with the obligations set forth herein.

8) The Receiving Party shall immediately upon request by the Disclosing Party or upon completion of RFP deliver to the Disclosing Party all material including all copies (if any) made under clause 4.

9) The Receiving Party shall not without the written consent of the Disclosing Party disclose to any person that any discussions or negotiations have taken or are


taking place concerning the RFP or the bid document or the bidding process nor that the Receiving Party has requested or received any Confidential Information about the RFP or the bid document or the bidding process.

10) Both parties acknowledge that damages are not a sufficient remedy for the Disclosing Party for any breach of any of the Receiving Party’s undertakings herein provided and the Receiving Party further acknowledges that the Disclosing Party is entitled to specific performance or injunctive relief (as appropriate) as a remedy for any breach or threatened breach of these undertakings by the Receiving Party, in addition to any other remedies available to the Disclosing Party in law or in equity.

11) No failure or delay by either party in exercising or enforcing any right, remedy or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise or enforcement of any right, remedy or power preclude any further exercise or enforcement thereof or the exercise or enforcement of any other right, remedy or power.

12) The ownership of and the intellectual property in the Confidential Information shall vest in and belong exclusively to the Disclosing Party. The Receiving Party shall not acquire any ownership and intellectual property rights under this Agreement or through any disclosure hereunder, except the limited right to use such Confidential Information in accordance with this Agreement. No representations or warranties of any kind are given with respect to the Confidential Information disclosed under this Agreement or any use thereof, except as may be otherwise expressly agreed to in writing. The Receiving Party shall make its own assessment of the Confidential Information and satisfy itself as to its accuracy, completeness and appropriateness for use for the RFP and the bidding process.

13) The Receiving Party shall indemnify and keep indemnified the Disclosing Party and its affiliates from and against all direct claims, actions, demands, liabilities, damages, losses, costs and expenses (including, without limitation, consequential losses, loss of profit, loss of reputation and all legal and other professional costs and expenses) that Disclosing Party or any affiliate of the Disclosing Party may suffer or incur in connection with, or arising (directly) from this Agreement (including, without limitation, any act or omission of the Receiving Party, or any person to whom the Receiving Party has disclosed or given access to any part of the Confidential Information whether intentionally or not (including arising from any onward transmission by that person).

14) This Agreement shall be governed by and construed in accordance with the laws of India. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the courts in India.

15) This agreement shall survive for a period of one year from the date of consummation of the last of the Real Estate Properties of Disclosing Party mentioned in RFP.


16) Any notice which may or is required to be given pursuant to this Agreement shall be in writing and shall be sufficiently given by registered mail or served personally upon the Party for whom it is intended, addressed for

Air India to [ ]

for the Recipient at [ ].

The date of receipt of any notice, if served personally, shall be deemed to be the date of delivery thereof and, if mailed, the third business day after dispatch.

17) This Agreement constitutes the entire agreement between the parties with

respect to the subject matter hereof. No modification of this Agreement will be binding upon either party unless made in writing and signed by a duly authorized representative of each party. In the event that any of the provisions of this Agreement shall be held by a court or other tribunal of competent jurisdiction to be unenforceable, the remaining portions hereof shall remain in full force and effect.

IN WITNESS WHEREOF this Agreement has been executed by the duly authorized representative of each party on the day and year first above written. SIGNED by _____________________________ for and on behalf of Air India Limited

SIGNED by ____________________________ for and on behalf of Name of Bidder /Company Company Stamp

Note: i. The mode of execution of the Non Disclosure Agreement should be in accordance with

the procedure, if any, laid down by the applicable law and the charter documents of the executant(s) and when it is so required the same should be under common seal affixed in accordance with the required procedure.


ii. Also, wherever required, the Applicant should submit for verification the extract of the charter documents and documents such as a resolution/power of attorney in favour of the person executing this Non Disclosure Agreement for the delegation of power hereunder on behalf of the Applicant.

iii. For a Non Disclosure Agreement executed and issued overseas, the document will also have to be legalised by the Indian Embassy and notarised in the jurisdiction where the Non Disclosure Agreement is being issued.



RFP No:…………………… DATE:……….. Appendix-V

Format of Covering Letter for Bid Form (Letter head of the Qualifying Bidder)

(full Postal Address of the Qualifying Bidder,) (Telephone No of the Qualifying Bidder,)

(Fax No. and Email ID of the Qualifying Bidder)

(Upload on the website______ and/ or hand deliver/ post to Air India) Date: Air India Ltd. (Insert Address) Kind Attn: Subject: Bid for purchase of Real Estate Properties of Air India Ltd. Sir, Being duly authorized to represent and act for and on behalf of _____________(herein the Qualifying Bidder), and having studied and fully understood all the information provided in the Request for Proposal for sale of Real Estate Properties, RFP No____________(“RFP”), the undersigned hereby apply as a Qualifying Bidder for the purchase of Real Estate Properties mentioned in the Bid Form of Air India according to the terms and conditions of the Request for Proposal for sale of Real Estate Properties of Air India, RFP No_______ hereby express my/our “Bid” for the Real Estate Properties contained in the RFP .

Or,

I, name of the Qualifying Bidder, address of the Qualifying Bidder, s/o, do hereby confirm that having studied and fully understood all the information provided in the Request for Proposal for sale of Real Estate Properties RFP No____________(“RFP”), the undersigned hereby apply as a Qualifying Bidder for the purchase of Real Estate Properties of Air India mentioned in the Bid Form according to the terms and conditions of the Request for Proposal for sale of Real Estate Properties of Air India, RFP No_______ hereby offer express my/ our “Bid” for the Real Estate Properties contained in the RFP.

The Bid Form along with necessary annexures duly signed and complete in all respects is annexed herewith for your reference and perusal. The name of the concerned official who could be contacted for further information and details is mentioned herein:

Name of the Person/s: Address Phone No Fax No. :

4. This Bid is made with full understanding that:


d. Air India reserves the right to reject or accept my/our Bid, modify/ cancel the process, and/or reject all or any of the Bids.

e. Air India shall not be liable for any of the above actions and shall be under no obligation to inform the Qualifying Bidders of the same.

f. The Qualifying Bidder is submitting the information to succeed in the bidding process and is not bidding in collusion or for the benefit of any other party.

5. I/We, the undersigned declare the statements made, and the information provided in the duly completed Bid form enclosed is complete, true and correct in every aspect.

6. I/We have read the terms and conditions of Request for Proposal for sale of RFP and am/are willing to abide by them unconditionally.

Name__________________ For and on behalf of _______________________ (Name of Bidder) Enclosures:-

e. Bid Form f. Acknowledgement Letter g. Acceptance Letter



RFP No:…………………… DATE:………..

APPENDIX-VI BID FORM

(Upload on the website______ and/ or hand deliver/ post to Air India) Qualifying Bidders are obligated to submit the following details in the below mentioned format with all the requisite enclosures, which shall be submitted in Envelope B Bid amount offered for the property (ies) is given below: S. No. Particulars of

the Property Description

Flat/ Plot/ office/ residence

Built up area

Specified EMD

Bid amount (in Rupees)

Note: in case the interested party is desirous of bidding for more than one real estate property. We have enclosed the EMD for Rs…………………… (Rupees…………………….) as computed in the table above as specified in the ________ The aggregate Bid Amount offered is Rs.___________ (Rupees………………………….) for the abovementioned property(ies) We further acknowledge and agree that: -

i. In case my/our Bid/Offer is accepted and in the event I/we fail to pay the balance consideration in the manner specified by .............., the amount of Earnest Money and any further instalments, if any, paid by us under this offer shall stand absolutely forfeited by .........and I/we shall raise no claim or demand in relation to the decision of Air India.

ii. This Bid/Offer is valid for a period of ........... days from the Bid Form Submission Date or such extended date as may be determined by ................

iii. I/We have read and understood the terms and conditions of the Request for Proposal for sale of Real Estate Properties RFP No____________ and hereby unequivocally and unconditionally accept the same.

iv. The decision of ...............concerning this transaction shall be final and binding on me/ us.


v. I/We have made this Bid in our individual capacity on the basis of the information provided to us and the due diligence carried out by us.

vi. I/We agree and confirm that AIR INDIA has right to terminate and cancel our

Bid/Offer without any interference by us till such time period offer remains unaccepted.

vii. We confirm and agree that the sale is on “As is where is Basis” and we shall have

no recourse on AIR INDIA for deficiency in the documents or title in the property(ies).

viii. I/We further undertake that I am not subject to any litigation or court order or

winding up proceedings which would limit or restrict my right to undertake and consummate the sale transaction in the event I/We are declared as Successful Qualifying Bidder.

ix. That my/ our net worth for consecutive previous five financial years

immediately preceding the date of RFP is positive and the same is certified by our Chartered Accountant.

We hereby declare that the information stated hereinabove is complete and correct and any error or omission therein, accidental or otherwise, will be sufficient justification for .............. to reject my/our Bid and/or to cancel the award of sale of the property(ies). ___________________ Signature of the Bidder Full Name Designation (as applicable) Name of the Company (as applicable) Address Date



RFP No:…………………… DATE:………..

Appendix-VII FORMAT OF ACKNOWLEDGEMENT LETTER

Letter head of the Company/ Individual (Upload on the website______ and/ or hand deliver/ post to Air India)

Date: Air India Ltd.

Acknowledgement Being duly authorized to represent and act for and on behalf of _____________(herein the Qualifying Bidder), and having studied and fully understood all the information provided in the Request for Proposal for sale of Real Estate Properties RFP No____________(“RFP”), the undersigned hereby confirms that undersigned having a requisite power of Attorney for and on behalf of Qualifying Bidder had duly inspected the site of the Real Estate Properties mentioned in the Bid Document and have also inspected the “Property Information Docket” in the virtual “Data Room”.

I have also otherwise undertaken due diligence on the Real Estate Properties mentioned in the Bid Document and have satisfied my self of the title, and other relevant particulars and description of the property material to make a valued and reasoned judgment on the said Real Estate Properties.

I have read and understood all the documents and terms and conditions of RFP and the requisite agreement templates and have satisfied my self of all the procedural formalities.

I undertake that Air India has provided all information sought by me/ us and that no further information is sought or demanded by Air India in relation to the Real Estate Properties mentioned in the Bid Document.

________________ Signature of the Qualifying Bidder Full Name Designation (as applicable)


AIR-INDIA LTD


Appendix-VIII FORMAT OF THE ACCEPTANCE LETTER

(Upload on the website______ and/ or hand deliver/ post to Air India)

To,

(____________)

Sir,

We hereby unconditionally accept the terms and conditions of the Request for Proposal for sale of Real Estate Properties RFP No____________ and all the in its entirety for RFP

no.____________________.

We also confirm that payment of Earnest Money Deposit has been made in the form of

DEMAND DRAFT / PAY ORDER and enclosed herewith.

DATE:

SIGNATURE OF THE TENDERER QUALIFYING BIDDER

WITH RUBBER STAMP



RFP No:…………………… DATE:……….. Annexure A

DETAILS OF REAL ESTATE PROPERTIES OF AIR INDIA


ANNEXURE H


DISCLAIMER: The purpose of this document is to provide Bidders with basic and preliminary information to assist the formulation of their Bid. The information contained herein is only for a limited purpose to inform bidders about the Real Estate Properties subject to this Request for Proposal and for no other purpose. This Request for Proposal does not, and does not purport to contain all the information and data each Bidder and/or its advisors may desire or require in reaching decisions concerning their Bids. Each Bidder should conduct his own investigations and analysis and should check the accuracy, reliability and completeness of the information in this Request for Proposal. Bidders should form their own views as to whether information provided herein or separately is relevant to any decisions that they make and should make their own independent investigations in relation to any additional information that they may require. This document does not expressly undertake any confirmation about accuracy of the information and has been prepared on the basis of available information available and the Bidders should conduct their own due diligence, investigation and analysis. Further, it the information contained herein or in the Data Room may change or deviations in the quality and quantity of information may change and it should not be assumed that the information is complete, final and confirmed. While Air India has taken due care to ensure the accuracy of the information contained in this Request for Proposal or contained in the Data Room, it has not conducted any legal, financial of other due diligence and does not confirm the accuracy, adequacy, sufficiency or otherwise of any information contained in this Request for Proposal or in the Data Room. The information contained in this Request for Proposal or any other information which may be provided to Bidders is subject to change without notice. Further, it should not be assumed that there shall be no deviation or change in any information provided. Air India may, in its absolute discretion, but without being under any obligation to do so, update, amend or supplement the information contained herein including the envisaged transaction process mentioned. While this Request for Proposal has been prepared in good faith, neither Air India, nor its employees or its Consultant make any representation or warranty, express or implied, or accept any responsibility or liability, whatsoever, in respect of any statements or omissions herein, or the accuracy, completeness or reliability of information, and shall incur no liability, under any law, statute, rules or regulations as to the accuracy, reliability or completeness of this Request for Proposal, even if any loss or damage is caused by any act or omission on the part of Request for Proposal or its employees or its Consultant , whether negligent or otherwise. This Request for Proposal has not been filed, registered or approved by any regulatory or judicial authority. Recipients of this document, resident in jurisdictions outside India as well as those residents in India should inform themselves of and observe any applicable legal requirements and Air India, its representatives and its Consultant will not be responsible for compliance with the same. Air India reserves the right to accept or reject any or all Bids without giving any reasons. Air India and its representatives and its Consultant will not entertain any claim for expenses in relation or pertaining to the preparation and submission of Bids and as such no financial obligation/liability would accrue to Air India, its representatives or its Consultant on such eventualities.