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"7. Increment.
At the end of each round, the bid with highest value will be the "Threshold Bid Amount" for the next round. The Resolution Applicants must match or exceed the Threshold Bid Amount for the respective round in order to continue participating in the Challenge Process. Resolution Applicants will have to improve their bid in each round in multiple of Rs. 10 Crores.
Alternatively, if any Resolution Applicant is unable to match or exceed the Threshold Bid Amount for the respective round, they will have an option to put forward their best bid (which may be lower than the Threshold Bid Amount for that particular round, but higher than their previous bid submission) and exit the Challenge Process by informing the Resolution Professional of such decision via the authorised e- mail-ID. The bid so, submitted will be considered as their final bid.

**Consortium was deemed to have exited the Challenge Process on account of its incremental bid in round 2 not being in multiple of INR 10 Crores over its previous bid as mandated under Clause 7 of the Process Note."

18. From the table as given above, it is clear that in the 1st round, the base bid was Rs.240 Crores. SRA gave a bid of Rs.241 Crores and Consortium gave a bid of Rs.240 Crores. Highest bid was treated as Rs.241 Crores. The other Resolution Applicants did not bid. It is also relevant to notice that during the Challenge Process, the Resolution Applicants were permitted to raise queries by e-mail. The consortium has sent an e-mail to the Resolution Professional requiring clarification. As noted above, in the 1st round, SRA gave bid of Rs.240 Crores. E-mail was sent by Entertainment Network India Ltd. as well as on behalf of Abhijit Realtors raising queries with regard to bid of Rs.241 Crores given by SRA. Objection was that SRA has to give bid in increment of Rs.10 Crores and SRA gave bid of Rs.241 Crores, hence, SRA should not be allowed to bid further. The e-mail sent on behalf of Abhijit Realtors on 27.10.2023 at 12.49 PM is as follows:-

"Subject: Re: Objection to Bid of Rs. 241 crores in Round 1 of RBNL From Rohit Mehra-RBNL Cc: ***** Dear Sir.
Please note that the process is being conducted as per the Challenge Process document. INR 240 Crore was the base price as specified in Clause, of the Rules for Challenge Process. As per the challenge process document, there was no requirement for the initial bid to be in the increment of 10 Crore and could have been of any value higher than the base price. After the initial bid, only the incremental bid by each resolution applicant is required to be in multiples of INR 10 Crore (of their own bid) as per Clause 7 of the Rules of Challenge Process Hope the above clarifies."
"7. Increment.
At the end of each round, the bid with highest value will be the "Threshold Bid Amount" for the next round. The Resolution Applicants must match or exceed the Threshold Bid Amount for the respective round in order to continue participating in the Challenge Process. Resolution Applicants will have to improve their bid in each round in multiple of Rs. 10 Crores."

23. The above clause provide that the Resolution Applicant must match or exceed the threshold bid amount for the respective round in order to continue participating in the Challenge Process. The next sentence in Clause 7 is "Resolution Applicants will have to improve their bid in each round in multiple of Rs.10 Crores". The consortium has given a bid in 1st round of Rs.240 Crores, hence, in the 2nd round they are obliged to give a bid of increment of multiple of Rs.10 Crores i.e. atleast Rs.250 Crores. Both the above requirements have to be fulfilled and to be given effect to. Matching or exceeding the threshold bid amount is one aspect for respective rounds and the Resolution Applicants has to improve their bid in each round by multiple of Rs.10 Crores. Consortium having bid only Rs.242 Crores in the 2nd round which was not in accordance with Clause 7 as noted above. Hence, Resolution Professional has rightly exited consortium from Challenge Process and highest bid of Rs.242 Crores was treated to be taken as a bid of consortium.