The unsuccessful auction of a five-star hotel site last week has put Greater Ludhiana Area Development Authority (GLADA) in a spot and left its officials worried since other auctions are slated to be held in the coming days.
It is pertinent to mention here that GLADA had decided to sell commercial and residential sites and other properties to generate funds for developmental works.
The prime properties put up for sale included the five-star hotel site on the Chandigarh road, the auction of which proved a damp squib.
As many as 20 residential flats in Sector 40 on the Chandigarh road with a reserve price of Rs. 1.92 crore each are scheduled to be auctioned on February 28.
Two chunks of land measuring 12,826 square yards and 12,196 square yards for multi-storeyed residential complex at Sector 40 on the Chandigarh road with a reserve price of Rs. 25.65 crore and Rs. 24.39 crore, respectively, would go under the hammer on March 4.
Five SCF sites and 10 booths at Urban Estate in Dugri with a reserve price of Rs. 8.84 crore and Rs. 9.07 crore, respectively, would be auctioned on March 6.
Already facing lack of sufficient funds for developmental projects, the unsuccessful auction combined with recession in the real estate market is sure to trouble GLADA officials, since they do not seem to have any other option to rake in money.
Asked to comment on the matter, GLADA additional chief administrator Baldev Singh said, "The recession in the real estate market can be one of the reasons for the unsuccessful auction of the five-star hotel site.
"GLADA even reduced the reserve price to attract more bidders but remained unsuccessful. Now we will reduce the reserve price further as per our policy and find some better ways to reach out to buyers."