4 years on, LIT mulling leasing out commercial complex

The complex, spread in around 2.2 acres of land, is one of the prime properties of LIT but, even as 13 years have elapsed since its construction, it has failed to attract any bidders

After failing to auction its complex at Rani Jhansi Road four times, the Ludhiana Improvement Trust (LIT) is now exploring the options of renting or leasing out the property to the highest bidder. The authorities have been trying to sell the complex since 2009 but to no avail.

The complex was initially put on auction for ₹197 crore in 2009 and 2013, but in the last two auctions organised by LIT last year, the reserve price was reduced to ₹157 crore. (HT File)

The complex, spread in around 2.2 acres of land, is one of the prime properties of LIT but, even as 13 years have elapsed since its construction, it has failed to attract any bidders. The project was completed in 2007 at around ₹15 crore and has two basements for parking, a restaurant, coffee shop, bank spaces, 10 showrooms, and 38 offices, among other facilities.

The complex was initially put on auction for ₹197 crore in 2009 and 2013, but in the last two auctions organised by LIT last year, the reserve price was reduced to ₹157 crore.

After that, the local bodies department had also formed a price fixation committee to further reduce the price which should not be less than the market value of the property.

One of the LIT officials, requesting anonymity, said neither has the committee been able to further reduce the price nor has anyone stepped up to buy the complex as a single unit. As no revenue is being earned from the property and infrastructure is also deteriorating, the authorities have been forced to change the stance, he added.

LIT chairman Raman Balasubramaniam said, “The proposal to rent or lease out the property is also being worked upon, and the final decision will be taken after discussing the matter with the state government.”

With LIT working to expand its office building in the Feroze Gandhi market, the authorities have planned to rent or lease out the existing office to earn revenue. Chairman Subramaniam said that the staff will be shifted to upper floors and the existing office will be rented out.