Multi-crore complex’s auction draws a blank

“It is a viable rate as per the prevailing market prices. Perhaps the realtors are confused in making calculations,they will only make profit in the end. It is sad that no bidder came forward,but we will send the report to the state government so as to get a fresh date of auction.”

Poor advertising for this major project is being cited as the major reason behind the bidders staying away from the auction. It needs to be mentioned that Rs 93-lakh budget was proposed for the advertisement campaign,but Punjab government did not responded to the Trust’s proposal with the result that low-key publicity preceded the auction of the mega project.

The chairman however denied reports and said that publicity campaign was up to the mark. The complex however was offering 1.18 lakh square feet area with parking facility of 251 cars. The five-storeyed building has banks,showrooms,restaurants,shops and apartments.

And LIT was also offering of 7.5% rebate if the money was deposited within 30 days of the auction. Meanwhile,it needs to be mentioned that the project was planned in the year 2000 and it was supposed to complete within one year. However it took LIT to complete after 8 years in year 2008 with a total cost of Rs 19 crores. The auction for the last past one year was being delayed because of the prevailing recession. But as the trust authorities learnt that but even today’s date did not help the trust authorities.

What kept bidders at bay?

The most glaring flaw in the auction rules is that present building has been raised up to 22 metres of height and any buyer can extend it up to 25 meters without making any changes in the building. But the trust has got permission from air headquarters,government of India to raise it till 45 metres. However for this the buyer has to demolish the present building completely so as to make it a high rise building. As per the reserve price of Rs 197 crores on 2.2 acres in Rani Jhansi road – the per square yard price comes out to more than Rs 2 lakh,which is more than double the prevailing market rates. And if the building has to be demolished for extending the height,what is the use of spending crores of rupees,say the realtors.