NDMC to auction unoccupied shops | delhi | Hindustan Times
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NDMC to auction unoccupied shops

To avoid getting duped by bidders who bid high amounts for shops and then disappear later, the New Delhi Municipal Council (NDMC) has this year decided to take back shops that don't pay for up to three months.

delhi Updated: Oct 11, 2011 00:12 IST
Hamari Jamatia

To avoid getting duped by bidders who bid high amounts for shops and then disappear later, the New Delhi Municipal Council (NDMC) has this year decided to take back shops that don't pay for up to three months.


On the 17th of this month, the civic body will auction 77 shops located in Palika Bazaar, Yashwant Place, Gole Market etc and has also decided to put in the new clause as they see four or five such cases each year that leads to revenue losses.

According to senior officials, businessmen who usually try to cheat are the ones who have shops adjacent to the shop being auctioned. They quote a high amounts and then don't pay up and let the shop go empty in order to avoid competition. "They are willing to sacrifice the R1 lakh security money because keeping the adjacent shop empty earns them profits that are several times higher than the security money," said a senior official. In some cases, the veranda of the empty shop is used to display goods.

This year, the NDMC has also introduced the concept of numbering the forms for prospective bidders. They can be downloaded from the website or can be collected from the Palika Kendra. This will avoid confusion and the bidders' records will stay with the civic body.

Another loophole that the agency is trying to plug is that of cartelisation. Officials said that the competing bidders in bids have been seen to be getting into informal agreements among themselves.

"We had to take these steps because it is difficult to prove that a bidder has duped the NDMC. So this year, after three months, all shops that have not been taken possession of will be taken back by NDMC and will be auctioned again," added the official. Earlier, the revenue loss continued for a year as the civic body held only one auction a year.