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The sale of a plot on the London /Orange City Street Project fetched the Nagpur Municipal Corporation (NMC) its highest-ever sale price for a plot. The municipal commissioner Radhakrishnan B, executive engineer Naresh Borkar and his team made a history by selling the 80,000 square foot property for Rs111.75 crore which equals about Rs 14,000 per square foot. Previously, the 26,997 square foot Air India land purchased by Kukreja Infrastructures in Civil Lines sold for the highest price of Rs33.01 crore or Rs12,227.28 per square foot.
The NMC site is located in South-West Nagpur between Khamla and Sahakar Nagar. The site has been barricaded since a few days by the auction buyer, M/s Praful Deshmukh and Praful Ved Infra Private Ltd. The footpath and storm water drain network are now completely covered by the new barricade causing some disagreement.
Sources say the NMC received such a high rate due to the increased floor space index (FSI) and several plot-specific relaxations. To improve the real estate market, experts suggest similar relaxation should be applied to lands larger than 4,000 square metres.
The auction buyer intends to use the land for both business and residential purposes, according to an NMC official. The auction buyer has received a letter of acceptance and a contract is likely to be signed soon. This is the second plot of the project that NMC is auctioning off. Previously NMC sold plot no. 1's 37,000 square feet at an auction for Rs44 crore which is Rs11,900 per square foot.
The project land which included an abandoned railway line, was purchased by NMC from Ordnance Factory Ambajhari in 2007. As per the orders of Union minister Nitin Gadkari, NMC initially intended to develop the project under a PPP format. However, nobody showed up to take up the assignment. NMC then began the auction by dividing the project into plots. The civic organisation is now preparing to auction off plot number 18.
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