Hyderabad: Despite receiving lukewarm response from bidders in the second e-auction, the Hyderabad Metropolitan Development Authority has still managed to mop up Rs 50 crore in the form of earnest money deposits (EMD) from about 450 people.
Interestingly, in the first e-auction even though 1,000 bidders had registered, the municipal authority had managed to garner only Rs 8 crore in the form of EMD and Rs 118 crore in the overall bidding. The HMDA auctioned as many as 189 plots in the first e-auction.
It sold 189 properties in April third week this year which promised to fetch Rs 350 crore to the metropolitan body. Almost four months after the auction was completed, the metropolitan body could only get Rs 110 crore while legal issues surfaced over the sale of over 70 plots.
Even though more than 1000 applications were received only Rs 8 crore EMDs were received. EMD is 10 percent of the estimated cost of the plot on the upset price. Upon confirmation of the allotment, the bidder has to pay 25 percent of the price within a week and the remaining 75 percent EMD in the next 60 days.
The upset price fixed per square yard was Rs 28,000. HMDA had come forward to issue NOCs for obtaining loans from banks subject to sanction of the respective banks.
If a bank approved the loan, the registered sale deed would be given directly to the bank.
In the first e-auction even though 1000 bidders had registered more than 500 had paid their EMD amounts worth Rs 8 crore to the municipal authority.
In the second e-auction, a huge land bank available with the HMDA is proving to be the backbone for it.
This time it has decided to auction nearly 1.37 lakh of square yards (82 plots) out of which 1.32 lakh sq yards are in the fully developed Uppal Bhagat lay-out, located very near Nagole Metro Rail Station.
Sufficient demand and good prices from realtors can be expected for the 67 vacant plots in this lay-out.
A senior HMDA official said that citing overwhelming response from the bidders it has decided to extended the e-auction registration date from September 18 to September 24. Accordingly, the e-auction of the plots was also extended and will now be conducted on September 27 for Uppal Bhagat plots and September 28 for other plots against the earlier dates of September 8 and 9 respectively.
