GIFT City tender under scrutiny for alleged irregularities involving Shilpa Shetty’s company

Allegations of irregularities have surfaced over the tender process for developing a food zone in Gandhinagar’s GIFT City, with claims that the terms were repeatedly altered overnight in ways that favoured Bastian Hospitality Ltd, a company in which film personality Shilpa Shetty holds a majority stake. Critics say the changes resulted in reduced revenue for the Gujarat government, with an estimated loss pegged at ₹68 crore.

Timeline of tender announcements and revisions

The Gujarat International Finance Tec-City Company (GIFT City Company) announced the tender for a food zone in Central Park on its website on July 2, 2025. Pre-bid clarifications were issued on 13 August, followed by the online tender process from August 13 to  September, 2. A physical submission was scheduled for September, 3.

Under the initial terms, bidders were required to take a 15-year contract to develop and maintain a one-lakh-sq-ft food zone, with a monthly rent of ₹65 lakh. The eligibility criterion specified an annual turnover of ₹8 crore to ₹8.5 crore

At ₹65 lakh a month, the projected annual rent was ₹7.8 crore, with a 15-year income estimate of ₹120 crore for the GIFT City Company. An additional ₹21.60 crore was expected as GST at 18%.

Successive rent cuts raise questions

The rent structure was revised several times. First, the rate was reduced to ₹55 per sq. ft. Fifteen days later, it was brought down again to ₹45 per sq. ft. Overnight, the rate was cut a third time to ₹35 per sq. ft. This brought the original monthly rent down by about ₹30 lakh.

Stakeholders allege that these rapid revisions were made without adequate justification, significantly lowering the government’s projected earnings from the project.

Eligibility criteria altered after tender launch

Under the original turnover criterion of ₹8–8.5 crore, an estimated four to five companies from Gujarat and other states could have qualified to bid. However, the turnover requirement was later amended overnight to more than ₹10 crore. This change, critics say, limited participation by local businesses and narrowed the field of eligible bidders.

Bastian Hospitality Ltd, in which Shetty reportedly holds 50% equity, ultimately secured the contract for 1,01,796 sq. ft at the revised rate of ₹35 per sq. metre.

Background of Bastian Hospitality

Bastian Hospitality Pvt. Ltd, originally incorporated as Alia Hospitality in 2014 by Ranjit Bindra, was renamed the following year. In 2019, Shetty acquired a 50% stake through her company SSK Yoga Pvt. Ltd. The company has taken loans of ₹23.30 crore from Central Bank of India and ₹8.90 crore from Indian Bank, along with additional borrowing from Axis Bank.

Local businesses say they were edged out

Business groups allege that the repeated changes to rent and eligibility criteria effectively excluded Gujarati entrepreneurs. They argue that the final conditions favoured a single bidder, undermining the government’s revenue prospects.

They also claim that some firms were disqualified on the grounds of lacking experience, even though they had initially been eligible under the earlier criteria.