No-show by top Mokila bidders after big auction, Real Estate News, ET RealEstate

September 12, 2023

HYDERABAD: The Mokila layout auctions secured a mammoth bid of 1.05 lakh per sq yard in plot no. 242, but the brouhaha died down with the successful bidder failing to pay up the initial 25% bid amount to Hyderabad Metropolitan Development Authority (HMDA) within the week’s deadline. Since the bidder violated norms, he forfeited his earnest money deposit (EMD) and his allotment was cancelled.

This wasn’t a stray case, 10 other bidders who participated in Budvel and Mokila auctions last month did not turn up to pay the first instalment. While one bidder forfeited his EMD in Budvel, there were 10 others in the Mokila list.

HMDA, however, has something to cheer in upscale Kokapet Neopolis Phase II, where the authority auctioned an acre for 100 crore and mopped up 3,319 crore revenue. Here, all successful bidders paid up the initial amount. In August, the Telangana government launched a series of land auctions in various areas, including Kokapet Neopolis Phase, II, Budvel, Mokila Phase I & II, Shabad and stray bids in other localities.

Nearly 100 acres was put up for auction in Budvel and a land parcel was sold for a record 41 crore per acre, fetching 3,625 crore to the exchequer. Of 17 land parcels, only one bidder failed to pay 33% of the first instalment.

Metropolitan authorities were overwhelmed by the response, but disappointed in Mokila, where the highest bidder with 1.05 lakh per square yard and the second with 99,500 per sq yard failed to comply with the 25% payment within a week. Officials, however, said there will always be aberrations in auctions. “There has been a big demand for residential plots and people have preferred to take HMDA and government plots in every auction. To discourage non-serious bidders, the government will further enhance the EMD amount.

Cancellation letters have been issued to those who failed to pay the preliminary bid amount after emerging as highest bidder. They would be blacklisted and won’t be allowed to participate in future land auctions,” special chief secretary (municipal administration) Arvind Kumar told on Monday.

For Mokila plots, the EMD amount was 1 lakh and this is being attributed to bidders backing out. There are rumours that some realtors have participated in the auctions and bid for the highest amount to artificially raise the market rates in their areas.

The state earned 8,000 crore in land auctions in the past few months and this earned the praise of chief minister K Chandrasekhar Rao.

  • Published On Sep 12, 2023 at 09:36 AM IST

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