Other four properties owned by the don outside Maharashtra were also auctioned. However, details of these assets and their bidders are not known.
Journalist-turned-activist S Balakrishnan, who runs NGO 'Desh Sewa Samiti', plans to start a computer education centre for poor children on the premises of the property.
Interestingly, Hindu Mahasabha won the bid at Rs 3.32 lakh to purchase Dawood's Hyundai Accent, which was priced at measly Rs 15,700.
This green sedan has been parked at a government society in Ghatkopar for the past four years and is in bad shape with burst tyres and shattered windshield.
Besides Balakrishnan, a Delhi-based lawyer Ajay Shrivastava and president of Hindu Mahasabha Swami Chakrapani were among the bidders for the assets on block.
The government had appointed a private firm to hold the auction under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Properties) Act, 1976.
The base price for the 32.77 sq metre room was fixed at Rs 50.44 lakh.
Delhi Zaika, earlier hotel Rounak Afroz, is located at a short distance from Dawood's house in Dambarwala building in Pakmodia Street where his younger brother Iqbal Kaskar resides.
"Our only competitor was Durhani Trust which works for redevelopment work in Bhendi Bazar. The bidding went on for one-and-half hours and finally our bid for Rs 4.28 crore was accepted in open auction," Balakrishnan told reporters.
The reserve price of the property was Rs 1.18 crore.
When asked about funding for the property, which he has to manage within a month, Balakrishnan said he would arrange money from the common people of the country.
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