Applicants say Noida authority’s e-bidding system for plots faulty

There have been unexpected bids against 14 residential plots out of a total 241 plots on offer for sale during the plot scheme. Sources said that some of the bids placed were to the tune of ₹1,100 crore against a 450 square metres (sqm) plot located in Sector 44, a ₹50 crore bid against a 200sqm plot located in Sector 121 and a ₹12 crore bid against a 112sqm plot located in Sector 105

The exorbitant bids placed during a e-bidding process of residential plots on offer in a scheme has left the Noida authority officials perplexed, sources said on Sunday.

Sources said some of the e-bids were worth ₹1,100 crore. (Sourced)

There have been unexpected bids against 14 residential plots out of a total 241 plots on offer for sale during the plot scheme. Sources said that some of the bids placed were to the tune of ₹1,100 crore against a 450 square metres (sqm) plot located in Sector 44, a ₹50 crore bid against a 200sqm plot located in Sector 121 and a ₹12 crore bid against a 112sqm plot located in Sector 105.

It prompted many applicants to file a complaint, demanding an investigation into this matter. However, Noida authority chief executive officer (CEO) Ritu Maheshwari said that there is no need for a probe into the matter.

“As per the process, we consider that the applicants, who have placed these bids, will buy the plots and they are serious about it. We are likely to issue the allotment letters to all 14 of them. If they don’t deposit the plot cost in accordance with the rules, then we will seize their security money and sell the plot in future schemes,” said Maheshwari.

The applicants have to deposit 5% of the total plot cost as security money to become eligible for the e-bidding and 10% of this security money is seized if the bid is faulty, said Noida authority officials.

In September, the authority launched the plot scheme and decided to allot the plots to those who place the highest bid against a plot. The online bidding process took place on October 21, three days before Diwali.

The authority has managed to sell only 184 plots, including 14 with exorbitant bids out of the 241 plots available in Sector 30, 44, 105, 121 and 151, among others. As per the process, the applicants were supposed to place bids that are higher than the reserve price of a plot. The reserve price was different for each plot, depending upon the circle rate of a sector.

For example, the lowest circle rate was ₹56,000 per sqm in Sector 151, located along the Noida Expressway towards Greater Noida, which is a new developing area. The reserve price for the other plots was in the range of ₹56,000 per sqm to ₹1.75 lakh per sqm, sources said.

The Noida authority is set to earn ₹492.10 crore against the 170 plots sold, earning ₹144.04 crore more against the reserve price in the e-bidding system. However, many applicants said that the e-bidding system is against the interests of those who are looking for affordable housing schemes by the state government.

“In the e-bidding process, only big businessmen can afford to buy these residential plots. The common man with budget constraints cannot think of buying them because he cannot compete with people who do not have a limited budget. The authority staff and some market players have proved that the e-bidding system is faulty and it will not let a fair allotment process take place,” said Rajiv Gupta, a Noida-based real estate consultant.