AMC's land valuation inconsistencies cast doubt on fairness of auction process

In a recent development, a significant inconsistency has been brought to light in the land valuation policy of the Ahmedabad Municipal Corporation (AMC) concerning the auctioning of its plots and constructed properties. While the AMC adheres to the state government's policy for determining the valuation of open land to establish base rates for auctions, it follows its own set of guidelines when it comes to pricing-built properties to be sold or auctioned.

Ideally, within the Ahmedabad municipal limits, the land valuation and price fixing committee of AUDA, the regional development authority, is responsible for establishing the base rates for property auctions. However, this prescribed guideline has not been consistently followed in recent instances, raising concerns about the transparency and fairness of the process.

An official from the AMC expressed their concern regarding the new policy of requiring bidders to purchase entire floors at the Sindhu Bhavan parking complex, as it hinders smaller players from acquiring individual shops. This deviation from the historical practices of the AMC has raised eyebrows among industry experts.

In a contrasting example, the AMC proposed the sale of eight shops in the EWS 29 housing scheme in Chandkheda, with higher base prices compared to the plot value. Although the base price of the plot was Rs 1.01 lakh per square meter, the base price for the shops was set at Rs 1.21 lakh per square meter. This inconsistency in pricing policies further emphasizes the need for clarification and uniformity within AMC’s valuation process.

In response to these concerns, a senior official from the town planning and estate department criticized the AMC for its departure from established policies. In particular, the decision to sell entire floors to bidders at the Sindhu Bhavan multi-level parking complex deviates significantly from their own precedents. The complex spans a total built-up area of 12,868.62 square meters, with the base price set at Rs 197 crore for the shops.

To address these discrepancies, another senior AMC official defended the valuation method, explaining that the AMC determines the base price of the plot and calculates the property value accordingly. In the case of economically weaker section (EWS) or low-income group (LIG) housing schemes, the AMC offers houses at concessional rates to the intended beneficiaries. Consequently, the valuation of properties on those plots is higher than the land value itself. In the Sindhu Bhavan complex, however, only the shops will be sold, while the parking area will remain under AMC ownership. Therefore, the AMC valued these properties at a lower price compared to the land value.

The inconsistencies in the AMC's land valuation policy have raised legitimate concerns about fairness, transparency, and adherence to established guidelines. Stakeholders and industry experts eagerly await clarification from the AMC regarding these deviations, as a transparent and consistent valuation process is crucial for maintaining trust and ensuring a level playing field in property auctions within Ahmedabad.

Next (Over 8,900 affordable homes readied for handover in Andhra Pradesh by Chief Minister)

AMC's land valuation inconsistencies cast doubt on fairness of auction process

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