The first e-auction of residential sites in Panchkula by the Haryana Urban Development Authority (HUDA) on Thursday turned out to be a damp squib, as only 13 residential sites were sold out of a total of 43 sites. HUDA managed to collect a revenue of Rs 25 crore against the total reserve price of Rs 87.39 crore for as many as 43 sites in urban estate, Panchkula. Out of the 43 sites, registrations were received for only 21 sites, out of which 13 were sold off.
The highest price was received for a 1-kanal plot in Sector 7 which had a reserve price of Rs 3.32 crore and was sold at Rs 3.34 crore. It was for the first time that HUDA held an e-auction for the residential sites in Haryana, as earlier the process was carried out through manual bidding.
Despite the demand for residential plots in Panchkula, the selection of the sites had not drawn an enthusiastic response as some residents highlighted that the plots were not exactly “left out plots”, but carved out near existing sites. “Many of these sites were near a nullah or their location was such that a buyer would not be interested,” said R K Arora, a property dealer.
Out of the 43 sites selected, 14 sites were in Sector 2, 11 sites in Sector 4, one site each in Sector 7 and Sector 9, and 16 sites in Sector 12.
Some residents highlighted that e-auction should not have been held for residential sites, as people are yet to get familiar with the system. “E-auction is not the right platform for sale of residential sites. All 43 sites were sold in open and there were no reserved categories. We had opposed it earlier,” said Suresh Aggarwal, president, Haryana Property Dealers’ Association.
However, Estate Officer Manish Lohan termed the response good. “It is a good response to make a beginning, considering that it was the first e-auction for residential sites. There is a certain level of security and assurance which comes if people purchase HUDA plots,” he said, adding that the lesser number of registrations could be due to the change in payment schedules.
Earlier, successful bidders were required to make complete payment within six years after making 25 per cent payment at the time of allotment. However, as per the new guidelines, successful bidders are required to make the complete payment within four months, which is not an affordable option for many.
“It is not a feasible option for genuine buyers at all. Even if HUDA gives permission for mortgage, the banks are not going to provide loans of over Rs 1.5 crore,” said R K Arora, a property dealer.