JDA finds it difficult to sell off properties
Formed with the objective of developing areas outside the municipal corporation limits in 2007, the Jalandhar Development Authority (JDA), which has jurisdiction over six urban local bodies and 272 villages, has failed miserably in selling its properties in the region in the past four years.punjab Updated: Jan 30, 2015 00:16 IST
Formed with the objective of developing areas outside the municipal corporation limits in 2007, the Jalandhar Development Authority (JDA), which has jurisdiction over six urban local bodies and 272 villages, has failed miserably in selling its properties in the region in the past four years.
Even as the JDA performed satisfactorily till 2010, it has failed to draw much public attention since the last quarter of 2011. The sale and auction of JDA properties remained absolutely nil for 2012 and 2013, the records reveal.
The JDA spent a substantial amount of money on the advertising of its auctions.
A much-hyped draw of plots in Kapurthala in 2013 too proved to be a damp squib. On December 27 that year, it put for auction 125 plots, but could sell only 15 due to a tepid response from buyers since the reserve price set by the JDA was higher than the market rate, an official said.
Perturbed over the poor response from buyers, the auction files were sent to the office of chief administrator of the Punjab Urban Development Authority (PUDA) in Mohali for reviewing the prices.
The plots in Kapurthala have not been put for auction since then.
On March 7 last year, the JDA put numerous sites for auction at Crystal Plaza in Jalandhar but got a lukewarm response from buyers, selling only two sites — an SCO and a booth.
The JDA collected Rs 3.05 crore from the auction, with only a slight appreciation from the reserved price.
It got a major blow on June 20, 2104, when out of 40 properties put for auction, it could sell only one property— a shop at the Old Roadways Workshop at Rs 87,400 per square metre against the reserve price of Rs 82,856 per square metre.
Other properties were put for auction again but did not get any response.
The properties which did not get buyers included nine shops at the old DC/SSP office at a reserve price of `1.37 lakh per square metre, seven shops on Kapurthala Road at a reserve price of `88,810 per square metre and five booths in the same locality at a reserve price of `81,150 per square metre.
On September 29 last year, an auction at Phillaur too got a tepid response. In this, 10 shops measuring 101.5 square metres each were put for auction at a reserved price of `5687 per square metre but only six were sold with one of them fetching `62,900 per square metre.
Sixteen booths were also put for auction but only six were sold.
The auction on October 28, 2104, is by far the most successful for the JDA in which it managed to generate `11.7 crore by successfully selling 12 properties of a total of 14 shop-cum-flats (SCFs) put for auctioning was being done.
On November 19 last year, 46 plots were put up for auction at Mukerian, of which only 20 were sold.
The JDA officials were happy over the fact these plots fetched double the reserve price.
Of the six plots, 11 shops and three booths were put for auction at Chhoti Baradari on December 12, the JDA managed to sell only 40 per cent of the properties. Out of a total of 20 properties put for auction, only 12 were sold.
Splendid Heights, a housing project of PUDA and being promoted by the JDA, also failed to get much response as it got only 67 applications for 490 flats.
First Published: Jan 29, 2015 23:39 IST