New Delhi, Aug 22 : Ahmedabad-based asset reconstruction company (ARC), CFM, one of the four ARCs that were searched by the Income Tax department in December 2021, has been handed a 600 MW plant of Vidarbha Industries Power Ltd (VIPL), without any challenge from any other bidder, for Rs 1,265 crore, a media report said. The report highlighted that the amount is just Rs 5 crore more than Reliance's OTS (one time settlement) offer price of Rs 1,260 crore. As per the Swiss Challenge process, the lenders were supposed to determine the starting price between 5 per cent minimum and 15 per cent maximum of the base price of Rs 1,220 crore that was initially offered by CFM.This would mean Rs 1,281 crore to Rs 1,403 crore. Notably, after the Income Tax department searches, the Reserve Bank of India (RBI) had also carried out a special audit of these ARCs and based on the outcomes, it had issued them show-cause notices in May 2023. However, despite serious charges, CFM Asset Reconstruction Pvt. Ltd. has been handed over the 600 MW VIPL, the report said. The report also claimed that for the Swiss Challenge process, SBI Caps had shortlisted Aditya Birla ARC, Reliance ARC and Asset Reconstruction Company India Ltd (ARCIL). "But, Swiss Challenge did not happen because two companies finally did not turn up, while Reliance ARC was kept in the dark even while the lenders finalised the deal with CFM, accepted its offer, and received the entire payment in a matter of few hours on the same day," it said. The sequence of events was executed on August 17, and the details leave no doubt that favouritism and not due process ruled the day, it said. The report further highlighted how VIPL called a joint lenders' meeting (JLM) to review and for the selection of qualified bidder for the sale of VIPL's debt. It said that two bidders, namely Aditya Birla ARC and ARCIL, did not submit the required documents post Eol application for the purpose of participating in Swiss Challenge. During the first meeting on August 17, the lenders decided to call for legal opinion on the eligibility of Reliance ARC, it said. Meanwhile, the anchor bidder CFM was called to increase its bid more than the VIPL'S OTS amount of Rs 1,260 crore, it said. The lenders again called a JLM during the day wherein CFM informed that it can increase its bid amount to Rs 1,265 crore, i.e., just Rs 5 crore above the VIPL OTS amount. The lenders accepted the CFM offer and closed the process. They asked CFM to deposit the amount the very same day, on August 17. CFM, within two hours, deposited the entire amount in three tranches in the lenders' account after taking it from Dickey Alternative Investment Trust having its office at 1106, Indra Prakash Building, Barakhamba Road, New Delhi, the report highlighted. It also said that while CFM was completing the process quietly, Reliance ARC was chasing them to know at what time the bidding will start on August 18. Instead of informing the exact timing of the bidding, Reliance ARC was informed at 6:50 p.m. of its disqualification on grounds of Section 29A of IBC and others. It appears that the lenders put up a pretence of following the Swiss Challenge, but actually no other bidder participated. The process was aimed to achieve the predetermined goal of selecting CFM. VIPL has a 600 MW power generation unit at Butibori, Nagpur. /IANS