The Indian Express 16.03.2013
9 residential plots unsold at DDA auction
On the final day of Delhi Development Authority's (DDA) auction of 28 residential plots, nine plots went unsold.
"DDA had earlier put up 33 plots of different sizes for auction. But five plots had to be withdrawn due to legal issues and only 28 plots eventually went under the hammer,'' DDA spokesperson Neemo Dhar said.
The 19 plots, which were auctioned from Wednesday to Friday, are located in various residential colonies such as Dwarka and Rohini, Zafrabad, Yamuna Vihar.
While DDA claimed that the response had been good with over 67 per cent of the plots having been sold, property dealers said the response was lukewarm because of the location of the plots.
The total amount received was Rs 46.6 crore as against a reserve price of Rs 38.7 crore approximately.
"We sold 19 plots of the 28 put up for auction. The highest bids were for the plots in Rohini. A plot at Sector-18, measuring 200 sqm, was sold for Rs 6.81 crore against a reserve price of Rs 6.80 crore. The second highest bid was for a plot measuring 120 sqm in Rohini Sector-8, Pocket F-19. It was sold for Rs 5.35 crore as against a reserve price of Rs 4.50 crore, approximately," a DDA official said.
Some plots in Rohini, measuring approximately 32 sqm, saw the lowest bids. These were auctioned for Rs 66 lakh against a reserve price of Rs 63.38 lakh.
Neeraj, owner of Trishakti Associates, which mainly deals with properties in Rohini, said: "Not too many bids were received because of the location of the plots. Also, in many cases, there were trees or temples located within the plots. It is up to the owner to get permission for cutting the trees and this becomes a problem for the owner."
Friday saw the maximum number of plots being sold with nine of the 12 plots up for auction being disposed of.
"The plots up for auction on Friday were around 31.69 sqm with a reserve price of Rs 63 lakh. The response was the worst on Wednesday with only four of the 11 plots being sold. Big plots of 200 sqm, located in Rohini, were up for auction on Wednesday with a reserve price of Rs 6.8 crore. The reserve price for corner plots was Rs 7.48 crore,'' the DDA official said.
Reserve price for corner plots or plots located on 24 meter road and above is 10 per cent higher, in each case, than the reserve price of normal plots,'' the official explained.
None of these plots were sold as no bids were either received or they were withdrawn from the bidding process, the official said.
"Many a time, people wait for the plots to be re-auctioned so that the reserve price comes down,'' he said.
"The plots which were not sold will be put up for bidding again. The money received from the bidding process will be used for infrastructure projects,'' the official said.
