E-Paper
No takers for Ludhiana Improvement Trust complex, committee formed to reduce reserve price further
The complex was initially put on auction for ₹197 crore in 2009 and 2013, but in the last two auctions, the reserve price was reduced to ₹157 crore
With the Ludhiana Improvement Trust (LIT) failing to auction its complex on Rani Jhansi road even after four attempts, authorities have decided to form a price fixation committee to decide on further reduction of the property’s reserve price.
The complex worth crores is located on 2.2 acres of prime land but has turned out to be a white elephant for the LIT as they failed to bring it to any use even after 13 years of its completion. The project was completed in 2007 at a cost of around ₹15 crore.
The complex was initially put on auction for ₹197 crore in 2009 and 2013, but in the last two auctions, the reserve price was reduced to ₹157 crore. But despite that, it failed to attract any bidders.
The local bodies department has directed the LIT to involve deputy commissioner Varinder Sharma in deciding the new reserve price so that it is not reduced to less than the market value of the property.
An LIT official requesting anonymity said the idea to auction the complex as one unit has turned out to be a bad decision. There are two basements for parking, restaurant, coffee shop, bank spaces, 10 showrooms, 38 offices among other facilities in the complex and these should have been auctioned separately, the official added.
LIT chairman Raman Balasubramaniam said, “The complex has turned out to be a white elephant due to misgovernance and maladministration of the SAD-BJP government. The local bodies department and LIT is making efforts to sell off the property and now a decision has been taken to form a price fixation committee under the chairmanship of the DC.”
