« Brandix Apparel City to go on stream next year | Home | Registration charges to go up in 9 cities »
Kokapet auctions disappoint HUDA
Posted by Srini Uppala | December 20, 2007 | 550 views
(No Ratings Yet)
Loading ...The Hyderabad Urban Development Authority’s dream of earning Rs 2,000 crore by auctioning 100 acres of land at Kokapet fell flat on Thursday. The Hyderabad Urban Development Authority sold a single 25-acre plot but the bid was a mere Rs 1 lakh over the upset price of Rs 12 crore.
Huda had expected Rs 20 crore per acre. The Andhra Pradesh Housing Board had sold land at Rs 14.55 crore an acre last week. Last year, Huda had earned about Rs 14 crore per acre at the nearby Golden Mile. Four bidders from Bangalore, Jaipur and New Delhi took part in the auction.
New Delhi-based Omaxe successfully bid for the 25-acre plot at the Empire by quoting Rs 12.01 crore per acre, totalling Rs 300.25 crore. No bid was submitted for the other three plots of equal size. Huda marketed the Empire venture as one that is “completely free from any encumbrance or litigation” besides being in the “premium neighbourhood” of software bigwigs and multi-national companies. This comes in the backdrop of legal tangles over the land at Golden Mile.
The Huda chairman, Mr D. Sudheer Reddy, who oversaw the auction along with the Outer Ring Road project director, Mr Piyush Kumar, admitted that the ongoing legal battle over the ownership of land in Kokapet might have deterred prospective buyers. “Though the claimants lost their case in the High Court, the litigation may have raised doubts among prospective buyers,” Mr Reddy said. “There was a similar litigation when the Golden Mile project was auctioned but we won the case ultimately. Now we will try to explain things to the buyers beforehand and conduct the auction the next week or in 10 days,” Mr Reddy said.
Reducing the upset price to Rs 10 crore per acre would be considered, he said. Was the upset price of Rs 12 crore not realistic, he was asked. “When we fixed an upset price of Rs 4 crore per acre at Kokapet, we got Rs 12 crore. Going by that we fixed the upset price,” Mr Reddy said. Omaxe’s joint managing director Sunil Goel said his company would take up group housing and commercial projects besides IT ventures on the plot. A senior Huda official later said the bidders apparently established a syndicate.
SOURCES:
Deccan Chronicle
Topics: Govt In Action, Real Estate |
Comments
You must be logged in to post a comment.