Facing fund crunch, HSVP to auction commercial properties

The department has also asked administrators to ensure that at least two to three auctions be held in June to generate revenue.

Facing a financial crunch spurred by indebtedness, the Haryana Shahari Vikas Pradhikaran (HSVP) has directed its estate offices in Haryana to prepare a list of commercial properties that can be auctioned at the earliest. The department has also asked administrators to ensure that at least two to three auctions be held in June to generate revenue.

Representative image (Sunil Ghosh / Hindustan Times)

The HSVP has a large land bank in Gurugram that includes valuable commercial properties in sectors across the city, and includes institutional land, land for commercial offices and hotels and sites for schools as well. The authority also has a number of markets in its sectors that are still in different phases of development and officials said they are surveying these areas to develop and monetise them.

A letter written from the HSVP head office in Chandigarh on May 23 in this regard says , “The Estate officer(s), HSVP under your jurisdiction may be directed to prepare auction schedule of commercial sites with a target of holding at least two-three auctions in the month of June itself. They may also impressed to identify the sites which have a good potential and market demand, be put to auction.”

The HSVP has, in Gurugram, auctioned a number of commercial sites over the past two years. The authority sold a large plot to IKEA , a multinational furniture brand, in Sector 47 for over ₹800 crores in November 2017. The Swedish company was also in talks with the authority to buy an adjoining plot as well. Likewise, the authority also sold a large plot to Korean auto major Hyundai in Sector 29 and construction on the site is underway. The authority had also sold a number of plots to private schools for large amounts. The HSVP now wants to build on its previous positive experience.

As per a a response to an RTI, HSVP has a loan liability of around ₹18,000 crores that has been accrued over the last decade, particularly due to large payments made for land acquisitions and for enhancement payments to farmers.

Chander Shekhar Khare, HSVP administrator, Gurugram, said they have been preparing a list of commercial plots, and properties that could also be developed and sold in the auctions at a premium. “We are preparing the final list of plots that can be monetised and properties that need to be developed so that we can earn a premium,” he said.