"The successful auction also shows that the government has the upper hand, compared to the earlier auction attempts when few dared to bid for these properties fearing the gangster's wrath," he said.
Pakmodia Street in south Mumbai, where the auctioned properties are located, was the den of the fugitive don till early 90s.
"Once he lorded over that area. Nobody could venture out on the Pakmodia Street without Dawood's or his men's knowledge," the former IPS officer said.
"Today, with the auction of his three prime properties - Hotel Rounaque Afroz, Shabnam Guest House and six flats of Damarwala Building - it is clear that the government has established a grip on things," Sivanandhan said.
"This (auction) is an important development. It shows that the government means business. This attitude will be helpful in bringing down Dawood's empire," he said.
"Who purchased these properties and for what purpose is another issue," the former top cop said.
Three south Mumbai properties belonging to Dawood Ibrahim, which are in a dilapidated condition, were auctioned for Rs 11.58 crore today, an official said.
The Saifee Burhani Upliftment Trust (SBUT) has bought the properties for its redevelopment project.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)