The first phase of Red Sandal Auction has got 885 Crore for the state government. However the government is not able to recover the money from the quoted companies in the auction. A Dubai based company auctioned for 300 Crore but is now negotiating with the state government as they feel they have quoted high price.
However the state government officials clarified that they can not reduce the amount to be paid now. The company had deposited 15 Crore as Caution deposit to the government to participate in the auction. It is even ready to lose the caution deposit than to pay the 300 Crore as quoted earlier.
Officials are worried if the going back of the company will give wrong signals to the other companies. They even feel such exit may influence the second phase auction too. In case the company really exit, it has to be seen if the government gives the consignment to second highest bidder or put the logs in the second phase.
