Chandigarh: 50% shops on offer at Sector 39 market sold

The Chandigarh administration’s agriculture department earned a revenue of ₹45 crore from the auction; the successful bidders will have three years to construct their shops

After two decades, the UT administration finally sold 12 out of the 23 fruit and vegetable shops in Sector 39 through an e-auction that concluded on Monday.

The Sector 39 grain market in Chandigarh was planned in 2002 to decongest the Sector 26 grain market, which had no room for further expansion. However, despite multiple attempts over the past year to auction all 92 shops, progress has been slow. (HT Photo)

The highest bid was of ₹3.85 crore against the reserve price of ₹3.70 crore, while the lowest bid was of ₹3.75 crore. The UT administration’s agriculture department earned a revenue of ₹45 crore from the auction. The successful bidders will have three years to construct their shops.

The e-auction process began on March 3 as part of the long-awaited relocation of the Sector 26 grain market. This was the first time that the auction was conducted online and was open to the general public. Each shop, measuring 120 square yards, had a reserve price of ₹3.70 crore. Unlike the previous system, in which shops were sold on a freehold basis, these will be allotted on a leasehold basis for 99 years.

In January this year, UT administrator Gulab Chand Kataria approved the auction of 46 out of the 92 fruit and vegetable shops. The State Agriculture Marketing Board decided to auction 23 shops first, with the remaining to be auctioned later based on the response.

The Sector 39 grain market was planned in 2002 to decongest the Sector 26 grain market, which had no room for further expansion. However, despite multiple attempts over the past year to auction all 92 shops, progress has been slow.

Once the shops in Sector 39 are allotted, the Sector 26 grain market will be de-notified in phases, marking the end of an era for one of the city’s oldest wholesale markets.

Brij Mohan, president of the Sector 26 Sabzi Mandi Arhtiya Association, termed the auction a “flop show”, questioning how a mandi could function with just 12 shops. He also expressed concerns that the increase in collector rates would discourage traders from participating in future auctions.