India, May 30 -- A crumbling hotel linked to an alleged high-profile deposit scam of the 1990s is finally headed for auction, nearly three decades after it was attached by authorities. The former VIP Palace Hotel in Vile Parle, once owned by late businessman Uday M Acharya, has been put up for sale with a reserve price of Rs.55.58 crore.

The auction is being conducted by the Competent Authority and Sub-Divisional Officer, Mumbai Western Suburb, under the Maharashtra Protection of Interest of Depositors (MPID) Act.

The property was attached following the collapse of C.U. Marketing's investment scheme in 1999 after the Economic Offences Wing (EOW) arrested Acharya, the company's director. Authorities alleged that the scheme cheated around...