The Ahmedabad Urban Development Authority's ambitious plan to sell 17 plots for Rs 1,238.35 crore has encountered significant challenges. In the initial auction phase, only four plots were sold, raising concerns. High prices and uncertainty over the new Jantri rates has deterred bidders. Two expensive plots in Vejalpur failed to attract any interest. AUDA refrained from auctioning six plots in Bhopal. Despite their efforts, the auction fell short of expectations. AUDA has not officially disclosed auction details, but insiders suggest disappointment. Nonetheless, two plots in Manipur-Godhavi and two in Chandkheda were successfully sold.
The ambitious endeavour of the Ahmedabad Urban Development Authority (AUDA) to sell 17 plots valued at Rs 1,238.35 crore is descending into failure. During the inaugural phase of the auction, merely four plots were sold, amounting to a sum of Rs 150 crore, out of the eight plots with base prices totalling Rs 561.28 crore in the auction that unfolded on June 30 and July 1. Perplexingly, the illustrious plots in Vejalpur, adorned with base rates of Rs 2.84 lakh per square metre and base values of Rs 270.62 crore and Rs 86.35 crore, failed to captivate any discerning bidders.
According to reports, insiders believe that exorbitant prices and the nebulous nature of the new Jantri rates, subject to numerous pronouncements and revisions by the state government have intimidated potential investors. The state government announced the revised Jantri rates on February 11, set to take effect on April 15. Subsequently, AUDA's land disposable price fixing committee convened on March 9 to ascertain the valuation of the 17 plots earmarked for sale. Of the lots, only two in Manipur-Godhavi, boasting the most generous dimensions and the most modest base rates, were procured, along with two plots in Chandkheda, featuring relatively compact dimensions. Only five out of the eight auctioned plots received bidder registrations.
AUDA deliberately steered clear of auctioning the remaining six plots in Bhopal, initially included in the ambit of the 17 properties slated for sale. In May of the previous year, AUDA gave its approval for the sale of these parcels, envisioning the opportunity to capitalize on the flourishing real estate market. Alas, AUDA's aspirations were met with despair as the auction unfolded into a lacklustre spectacle. While AUDA has not officially released the specifics of the auction, insiders have described the results as deeply disappointing.
A senior AUDA official stated that AUDA had offered a total of eight plots for sale, with two of them allocated for commercial purposes in Vejalpur. These plots were priced at Rs 2.84 lakh and Rs 2.72 lakh per square metre, respectively. Their cumulative base values reached Rs 356.97 crore, comprising Rs 270.62 crore and Rs 86.35 crore. The lack of bidder registrations prompted the exclusion of these plots from the auction. The Manipur-Godhavi plots, boasting the most expansive acreage of 16,647 square metres each, were assigned a base rate of Rs 35,200 per square metre, securing a valuation of Rs 60 crore for each plot. They were eventually sold for a slightly higher price. Similarly, two plots in Chandkheda, featuring more modest dimensions, also found successful buyers.
Established in 1978, the AUDA plans and develops Ahmedabad sustainably. It operates independently from the Ahmedabad Municipal Corporation (AMC), focusing on urban planning, development plans, and environmental improvement. AUDA formulates master plans, township plans, and urban schemes while facilitating affordable housing and responsible government land use. It contributes to the overall enhancement of Ahmedabad's urban landscape.
This story was earlier published in Times of India (TOI)
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