80 unsold premium flats in CWG village will be sold to PSUs at a discount: DDA

“These flats have been lying locked for a long time. The reserve price is high. We have decided to reduce the cost of these flats and sell it to thepublic sector undertakings,” The land owning agency’s vice-chairman Tarun Kapoor said.

The Delhi Development Authority (DDA) plans to sell 80-odd premium flats at the Commonwealth Games village—one of its plush housing projects in the national capital—to Public Sector Undertakings (PSUs) at reduced price.

Residents say that there is demand for high-end housing, but DDA’s reserve price is higher than the market rate. (HT Archive)

The reason: the land-owning agency has not been able to sell these flats for the past six years due to the high reserve price of ₹7.2 crore in the auction held in 2012.

In 2015, the land-owning agency had put 152 premium flats — 3 BHK with 3,000 square feet plinth area — on auction and fixed the reserve price at ₹7 crore, but it didn’t receive a single bid. Since then, DDA officials say, these flats have not been put on sale.

The land owning agency’s vice-chairman Tarun Kapoor said, “These flats have been lying locked for a long time. The reserve price is high. We have decided to reduce the cost of these flats and sell it to thepublic sector undertakings.”

DDA officials say that once a reserve price is fixed, it is difficult to reduce it.

“There is a process to fix the reserve price. Usually, it can’t be reduced. But we can reduce it if these flats are being sold to PSUs or government agencies. We plan to place a proposal in this regard will be tabled in the DDA’s meeting,” said a senior DDA official, requesting anonymity.

Residents of CWG village say that there is demand for high-end housing, but DDA’s reserve price is higher than the market rate. “The prevailing market rate is between ₹18,000-20,000 per sq.ft. There is demand for housing in the area and people will buy the flats provided DDA brings down the reserve price,” said a resident, who bought the flat in 2012, requesting anonymity.

For the Commonwealth Games in 2010, the Delhi Development Authority had hired real estate major Emaar MGF to construct CWG village along the Yamuna floodplains.

A total of 1,186 flats were constructed of which the DDA got 711 flats, including 333 flats, which it had purchased from the private developer for ₹750 crore (approximately).

The remaining flats were with the developer.

Out of 711 flats, 378 units were given to the housing and urban affairs ministry (then urban development ministry) to be added in its General Pool Residential Accommodation (GPRA) and 45 flats were reserved for DDA employees. The land-owning agency lapped up ₹400 crore (approx) by auctioning 74 units in 2012. Close to 60 flats are under litigation due to a dispute between the developer and the Delhi Development Authority.

Emaar MGF couldn’t be reached for a comment despite repeated attempts.

Spread over 157 acres on the Yamuna floodplain, the Common Wealth Games Village has state-of-the-art sporting facilities and residential areas. The residential area has 34 towers in 14 block.

All the flats had air-conditioning units.