Reserve price of Sector-17 booths by 20% after no-show in auctions | punjab | chandigarh | Hindustan Times
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Reserve price of Sector-17 booths by 20% after no-show in auctions

Third time lucky? While MC battles financial crunch and hopes this slash will attract bids, traders say they want further cut in the starting bid and conversion of booths from lease hold to free hold.

punjab Updated: Mar 28, 2018 14:44 IST
Hillary victor 
Booths at Sector-17 underbridge were constructed three years back and in absence of any activity, they are lying defunct.
Booths at Sector-17 underbridge were constructed three years back and in absence of any activity, they are lying defunct. (HT File)

Failing to find takers for 40 booths at the Sector-17 underbridge and at 11 booths at the underpass joining Sector 17 inter-state bus terminus (ISBT) with Sector-22 market in the auction held twice in the past three years, the civic body has reduced the reserve price by 20%. The auction will be held in May.

Also, eight booths in Sector 39 D, and for 15 booths at Mauli Jagran, the reserve price has been slashed by 10%. The decision of slashing the reserve price was taken at the House meeting on Monday.

The underbridge was constructed at the cost of Rs 16 crore in Sector 17 in November 2013. It has 40 booths, two toilets each at both the ends and has a provision of lifts. Similarly, the underpass of Sector-17 ISBT joining Sector 22 was constructed around 15 years back. Booths at both the areas have deteriorated over the years.

The buyers blame the high reserve price and condition of lease hold.

Kamaljit Singh Panchi, chief adviser of property consultant association, Chandigarh, said, “Even after slashing the reserve price, it is very high and the condition of lease hold for 99 years should be changed to free hold. Also, they are charging 2.5% ground rent on the total amount and 15% service tax.”

“These booths are located at places where the customer flow is very less. To develop the area, they should further slash the reserve price,” he said.

But the municipal corporation is facing a major financial crunch and several corporation projects are in a limbo because of this. The audit report of the accountant general released recently stated that the civic body did not make efforts to give booths on lease.

City mayor, Davesh Moudgil said, “Since the reserve price has been slashed, we are hopeful of getting good response now.”

At Sector 39 D, booths measuring 51.27 square yard, the reserve price is slashed from Rs 1.4 crore to Rs 1.26 crore. And for booths with 9.27 square yard size, the reserve price is now Rs 22.86 lakh, down from Rs 25.4 lakh.