Godrej purchases two group housing plots in Noida for ₹377 crore in e-bidding

The Godrej Properties Limited has bought two group housing plots in Noida for ₹377 crore, in an e-action that took place on Friday, officials of the Noida authority said

The Godrej Properties Limited has bought two group housing plots in Noida for ₹377 crore, in an e-action that took place on Friday, officials of the Noida authority said.

Godrej purchases two group housing plots in Noida for ₹377 crore in e-bidding

A total of five realty firms were eligible to place bids for the two group housing plots located in Sector 146, along the Noida-Greater Noida Expressway. The authority organised the e-bidding on Friday from 11am to 1pm and the Godrej placed the highest bod of ₹377 crore for the two plots.

“We conducted e-auction for the two plots successfully and are happy with the trust and response that we got from the realty firms. This allotment of two plots will attract an investment of ₹2,000 crore,” said Ritu Maheshwari, chief executive officer of the Noida authority.

The authority is allotting residential (individual), industrial, commercial and the group housing plots via e-bidding to ensure transparency and accountability. Whosoever places the highest bid gets the plot and the authority is expected to generate more revenue by selling plots through e-bidding.

The authority, on September 5, launched the group housing plot scheme after a gap of six years. The scheme was opened for bids till October 6, said officials.

The reserve price for a single plot in this scheme is ₹188 crore and Godrej placed the highest bid, said officials.

DLF and Golf Green Mansions were the other eligible developers for the e-bidding but they did not participate in the process on Friday, said officials.

Officials of Godrej was unavailable for comment on Friday.

As the authority has set a condition that the successful bidder will have to pay the plot cost within three months from the date of allotment, no Noida based developer took part in the e-bidding, said officials.

Before 2017, the policy was different and realtors need only pay 10% of the land cost at the time of the allotment; the remaining 90% could be paid in instalments over the next seven to nine years. The authority scrapped this policy after the developers defaulted on payments, causing problems for homebuyers, who failed to get possession of even ready flats.

“Now, with the new policy, no mid-size developer can afford to make such huge payments in just three months. This is the reason that no Noida based developer participated in the e-bidding. The new policy discourages entrepreneurs who want to make it big with small investments,” said Abhay Kumar, CMD of Griha Pravesh Group.