Collector rate to be reserve price for Manimajra land auction: UT
The UT Administration has clarified that the prevailing collector rate will be the reserve price for auction of around 7 acres of land in Manimajra.
In a letter to the Chandigarh Municipal Corporation today, the UT Estate Department elaborated the consolidated guidelines in respect of e-auction of residential plot number 1 to 5 in Manimajra.
The Administration said unearned increase may be calculated on the basis of the average of auction price over the last three financial years for the property of the same category, and in case an auction could not be held successfully for years due to market conditions. The Administration said all auctions as proposed by the Estate Office will be e-auctions.
The e-auction of residential properties may be allowed on freehold basis and the other properties i.e. commercial, residential and nursing home sites on leasehold basis.
The UT Administration has sought the approval of the Union Cabinet in respect of the allotment of land on chunk basis to the Chandigarh Housing Board for construction of apartments for 3,930 allottees.
The apartments will be constructed under the self-financing housing scheme for UT employees at a cost of nearly Rs 2,206.62 crore taking into consideration the collector rate of Rs 74,131 per sq yard i.e. Rs 35.88 crore per acre applicable for 2017, on leasehold basis for 99 years. In view of this, the prevailing collector rate will be the reserve price for the auction of land on chunk basis.
The letter asks the MC Commissioner to take necessary action in the matter keeping in view of the abovementioned clarification and guidelines.
Mayor Harpreet Kaur Babla has been pursuing the matter with the Administration for getting the permission for auctioning land in Manimajra to overcome the financial crisis.
Sources said the MC was likely to get over Rs 400 crore from the auction of land located in pocket 6 near Panchkula. The Architecture and Urban Planning Department has approved the zoning plan of the residential site as per the Master Plan. Following the clarification from the Administration, the MC will start working on e-auction soon. Multi-storey flats will be constructed at the site.
In 2005, the MC had sold a residential site of 5.39 acres in Manimajra for Rs 108 crore for a housing society on the freehold basis. It had sold a hotel site in Sector 35 at a cost of Rs 101.37 crore on the leasehold basis in 2006. The MC is facing financial crisis and has no funds for development works.
