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GDA to tweak auction norms for unsold properties
Ghaziabad: The Ghaziabad Development Authority (GDA) has formed a committee of officials and has decided to tweak the procedures for auctioning its smaller unsold
Ghaziabad: The Ghaziabad Development Authority (GDA) has formed a committee of officials and has decided to tweak the procedures for auctioning its smaller unsold properties in order to get optimum returns and also to attract more buyers.
The officials said the proposed procedures will be applicable only for GDA properties which are up to 2,000 square metres in area.
The authority, almost every alternate month, puts its properties on auction to generate revenue. At present, the authority has about 395 properties which are up to 2,000 square metres and there are another 48 properties which are over 2,000 square metres. As per official estimates, the unsold properties have been valued at about ₹1,600 crore.
“Currently, we have a reserved price fixed for a particular property. Any bidder coming with a price over and above the reserved price is offered the property. From now on, we have decided that if any property in a particular area fetches higher than the reserved price, the other properties in the area will have a base price equivalent to the highest bidding amount in the next auction,” Kanchan Verma, vice-chairperson, GDA, said.
The officials assume that if properties in an area command a higher price than the reserved price, the other properties can also be sold at a higher price as well.
“Further, the bidders are generally asked to bid in multiples of ₹1,000 per square metre. This increases ambiguity. In case a property is in Indirapuram, the multiples of ₹1,000 will lead to a major escalation in overall valuation of property. However, the overall valuation of a property will be less if it is not located in an upscale area. So, a committee of officials will chalk out multiple bid amounts based on locations,” she said.
The officials said the proposals will be applicable to both residential and commercial properties.
“There is a government order which allows that a single bidder can also participate and purchase property if it has remained unsold during past auctions. But, we are not allowing single bidders to participate. we will examine this issue later,” Verma said.
