CHB e-auction finds takers for only 4 of 182 leasehold properties

Only two units each of residential and commercial categories were sold; even in the last auction on August 10, the Chandigarh Housing Board had managed to sell only three commercial and five residential units
The freehold properties fared better in the auction though here also the response was lower than the last auction. (Getty Images/iStockphoto)
The freehold properties fared better in the auction though here also the response was lower than the last auction. (Getty Images/iStockphoto)
Updated on Sep 02, 2021 02:05 AM IST
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By HT Correspondent, Chandigarh

The Chandigarh Housing Board failed to attract good response to its latest e-auction of residential and commercial properties, most of which were offered on leasehold.

Out of the 149 commercial units on sale on leasehold basis, the board could sell only two units. The total reserve price of the two units was 1.06 crore and their sale fetched CHB 1.09 crore.

Similarly, out of 33 residential units, only two found takers. The highest bids received against these units came to 90.85 lakh against a total reserve price of 89.83 lakh.

Even in the previous e-auction held on August 10, CHB could sell only three of the 151 commercial units and five of the 38 residential units on offer.

On the tepid response to the latest auction, Yashpal Garg, chief executive officer, CHB, said, “In the residential category, the number of units was low, limiting the bidders’ choice. The lack of provision for conversion of leasehold to freehold impacted the sale of commercial properties. The outcome of all e-tenders will be placed before the board in its meeting on September 9 for deliberations and appropriate measures.”

Response to freehold properties tad better

The freehold properties fared better in the auction though here also the response was lower than the last auction.

CHB sold eight out of 34 units to the highest bidders. The reserve price of the eight units was 4.7 crore and a revenue of 4.8 crore was made from their sale.

A freehold MIG flat in Sector 51 (West) went for 92.25 lakh against the reserve price of 90 lakh, while the highest bid for a commercial unit on leasehold basis in Sector 49-B was 56.5 lakh against the reserve price of 55.03 lakh. Similarly, a leasehold MIG flat in Sector 44-D received the highest bid of 53.41 lakh against the reserve price of 53.39 lakh.

In all, CHB raked in 6.8 crore from the auction of eight residential units on freehold basis, and two residential and two commercial units on leasehold basis. These were offered against a total reserve price of 6.66 crore.

“During the past five months, the board has sold 95 residential properties on freehold basis in five e-auctions and earned 75.4 crore against the total reserve price of 70.26 crore. For leasehold properties, the board earned 5.42 crore by selling nine residential units and 7.39 crore from the sale of commercial properties,” Garg added.

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Wednesday, October 27, 2021