Huda sells three school sites in Gurgaon for Rs 135 crore

The cash-strapped urban authority has auctioned the sites for far more than the quoted reserve price

The cash-strapped Haryana Urban Development Authority (Huda), Gurgaon, has managed to auction three school sites for Rs. 135 crore, a figure far more than the quoted reserve price.

A vacant Huda plot in Sector 47. The authority is planning to identify all high potential sites across the two Huda estates in Gurgaon and auction them in a phased manner.(Manoj Kumar/HT File Photo)

Huda officials described the sale of three sites as a major turnaround for the authority as it has been battling with a steep financial crisis for the last year and a half.

The auction, which was held last week, also saw strong competition among major school chains that were ready to shell out a premium for the sites in sectors 47, 56 and 52. The first two sites meant for setting up senior secondary schools were bought for Rs. 60 crore each. The third site, meant for a primary school, was auctioned for Rs. 15.5 crore.

The reserve price for the bigger plots was fixed at Rs. 24 crores.

Huda administrator Yashpal Yadav said the sale of the three sites was a major revenue booster for the authority that is working to monetise its assets. “We are very motivated by the result as it indicates that Gurgaon is entering into a recovery phase and people are again willing to make large investments in the city. These resources would help in completion of several projects and in drawing new plans,” Yadav said. The authority managed to sell land for over Rs.12 crore an acre, which is phenomenal, he said.

Schools purchasing land at such a high rate is one of the reasons that school fees in Gurgaon are among the highest in the country.

The Huda, however, is not complaining. Enthused by the response to the sale of institutional sites, the authority is planning to identify all high potential sites across the two Huda estates in Gurgaon and auction them in a phased manner. “The major asset we have is land, both residential and commercial, but the focus primarily would be to sell commercial properties,” Yadav said.

In another positive development, the authority also conducted draw of lots on Thursday for people who have to give up their land for various road projects in sectors 81 to 95. Ten out of 14 oustees were allotted alternative plots. A Huda official said four oustees who did not participate in the draw would be issued notices, and if they do not participate in the scheme, then their right for relief will be forfeited.

With this draw, the acquisition of land in sectors 81 to 95 can be completed, making way for the completion of road projects.