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HMDA set to get richer by Rs 677.85 crore
Telengana Today  |  April 9, 2019

It has roped MSTC for conducting e-auction of 67 plots spread over 1.31 lakh square yards

 

Hyderabad: Cashing on the positive trend in real estate, Hyderabad Metropolitan Development Authority (HMDA) is set to get richer by Rs 677.85 crore through the e-auction of 67 plots in the Uppal Bhagayath layout.

 

HMDA has roped MSTC, a Central Government enterprise for conducting the e-auction of 67 plots spread over 1.31 lakh square yards. The plots were divided into different slots and the e-auction was conducted in two sessions, 9 am to 12 noon, and 2 pm to 5.30 pm on Sunday and Monday.

 

On Sunday, HMDA realised Rs 202 crore through the e-auction of 36 plots, and, on Monday, another Rs 475 crore was added to its coffers through the e-auction of the remaining 31 plots. HMDA officials claimed there were no technical snags and the entire e-auction went off smoothly.

 

HMDA had fixed Rs 28,000 per square yard as the upset price for the plots. Against this, the lowest bid price quoted was Rs 36,600 per square yard and the highest bid price quoted was Rs 73,900 per square yard. The average bid price was Rs 51,516 per square yard, which was much higher than the amount anticipated by officials.

 

On day one, the auction was conducted for 36 plots spread over 31,865.50 square yards and on day two, 31 plots spread over 99,713 square yards went under the hammer.

 

The auction took off a bit slowly on Monday but ended on an encouraging note as the bidders quoted their price very calculatedly. As against the upset price of Rs 28,000 per sq yard, the lowest quoted bid turned out to be Rs 42,100 per sq yard for a plot while the highest bid ended at Rs 50,700 per sq yard for another in the first session, said HMDA Secretary M Ramkishan.

 

Unlike on day one, when auction was conducted for plots in about 500 square yards to 850 yards, on second day, the plots size varied from 2,630 square yards to 8,434 square yards.

 

HMDA is facilitating payment of balance final bid amount in installments. Upon confirmation of the plot allotment, the bidder has to pay 25 per cent of the total bid amount within seven days.

 

The balance 75 per cent can be paid in within 60 days without any interest. In case, the bidder seeks more time, 10 per cent simple interest will be charged upto 90 days excluding the initial 60 days. Similarly 12 per cent and 15 per cent will be charged as the number of days extend up to one year excluding the initial 60 days.

 

When bidder fails to pay

 

What happens if the highest bidder fails to pay the quoted price?

 

Well, the HMDA will be forfeiting the Earnest Money Deposit (EMD) made by the bidder. EMD varies for different plots.

 

The same implies if the bidder fails to pay the balance final amount. HMDA will be forfeiting the EMD and the 25 per cent of the initial installment paid by the bidder. More importantly, HMDA will conduct a fresh auction for the particular plot, which the highest bidder had quoted for. Allotting the plot to the second highest bidder was ruled out, said HMDA Secretary M Ramkishan.