Market slump forces HUDA to put auction of property worth Rs 100 crore on holdhttps://indianexpress.com/article/cities/chandigarh/market-slump-forces-huda-to-put-auction-of-property-worth-rs-100-crore-on-hold/

Market slump forces HUDA to put auction of property worth Rs 100 crore on hold

The Haryana and Urban Development Authority (HUDA) has put on hold the auction of property worth nearly Rs 100 crore developed in the city,due to a downturn in the market.

The Haryana and Urban Development Authority (HUDA) has put on hold the auction of property worth nearly Rs 100 crore developed in the city,due to a downturn in the market.

According to officials,the auction of commercial property has not been done for the past seven months as the market was not upbeat. Last time HUDA had carried out an auction in July,it could sell only four units of commercial property. Officials said that the slump in the market has not gone,due to which they have no immediate plans to conduct the auction.

Estate Officer (EO) of HUDA,Ashwani Sharma,said that the auction is on hold as the “market is not buoyant”. “We are waiting for the market to show some improvement so that property can fetch us higher prices,” he said.

Officials added that,given the present market condition,the price of property,which was ready for sale is nearly Rs 100 crore,however,they expect to rake in more money in case market conditions improved. Rs 100 crore is the minimum price against which HUDA wants to float bids.

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HUDA Administrator Surjeet Singh said that the EOs had been empowered to take a decision on the auction after they assessed the market conditions.

Officials,however,said that in July 2012,they had put up for auction shop-cum-offices (SCOs),shop-cum-flats (SCFs),double-storey shops (DSSs),booths and kiosks,but the entire property couldn’t be sold at that time.

“We sold four properties in July 2012,and those in whose favour allotments were made have made the payment,” Sharma said.

Officials added that as per the current market rates,they expected to sell land for SCF and SCO between Rs 7-8 crore,and built kiosks and booths for Rs 1 crore. According to officials,the auctions have been put on hold in Sectors 25,26,27,28,14,15,and 16.

However,officials also said that while the current market conditions were the prime reasons for the auctions to be kept on hold,staff crunch at the allotment branch of HUDA was another issue the department had been grappling with. “We are severely short of staff. At the allotment branch,against the sanctioned strength of seven assistants,there are only four,” an official said.