Windfall for DDA, fetches Rs 1,494 cr in e-auction

The auction, conducted between November 21 and 27, involved 81 plots across categories such as residential, commercial, industrial, institutional and group housing.

Officials described the response as unprecedented, noting that every category recorded significantly higher bids than expected.

The industrial land category drew exceptional participation. Forty-one industrial plots, valued at a reserve price of Rs 53.08 crore, ended up receiving bids worth Rs 272.39 crore, an increase of 413 per cent.

Group housing plots in Dwarka’s Sector 27 emerged as the star performers. Against a reserve price of Rs 254.94 crore, the two plots received bids totalling Rs 642.49 crore, reflecting strong competition driven by recent infrastructure upgrades in the sub-city, including the Urban Extension Road (UER), and Bharat Vandana Park.

Commercial plots, which had remained unsold for several rounds in previous auctions, witnessed a dramatic turnaround this time. With the reserve price fixed at Rs 44.32 crore, the DDA received bids worth Rs 106.02 crore, a jump of 139 per cent.

This improved performance follows a significant policy change. The L-G had reduced the reserve price multiplication factor from 2 to 1.5, lowering the entry barrier for buyers.

A task force set up in December 2024 had recommended this after identifying the steep reserve prices as a primary reason for repeated failures of commercial plot auctions.

In the institutional category, the highest bids reached Rs 307.71 crore against a reserve price of Rs 224.80 crore, aided by a similar revision in the pricing formula, from a factor of 0.75 to 0.6.

Seventeen residential plots also received strong interest, with bids rising from a reserve price of Rs 52.05 crore to Rs 166.06 crore, a 219 per cent increase.

Officials said the revenue boost is the direct outcome of reforms introduced by the L-G and the DDA, including ground surveys, consultations with stakeholders and major infrastructure augmentation in key zones.

By recalibrating reserve prices and aligning them with market realities, the DDA was able to expand bidder participation, ultimately allowing market forces to discover the correct price, officials said.