Gautam Budh Nagar authorities scrap e-auctions, revert to traditional allotment process

The three development authorities in Gautam Budh Nagar have decided to discontinue the practice of allotting industrial plots through e-auctions and instead return to the previous system of draw of lots, interviews, and background checks. This decision was made in response to numerous complaints from entrepreneurs, particularly those associated with the MSME (Micro, Small, and Medium Enterprises) sector, who argued that the e-auction process was biased against them.

Entrepreneurs have been expressing their discontent with the e-auction process ever since its introduction last year. They claimed that it favoured large-scale businessmen and created obstacles for smaller enterprises looking to expand their operations. In light of these concerns, the authorities were directed to reinstate the previous method of allotment, which was communicated through a letter from the industrial development commissioner, Manoj Kumar Singh, on July 6.

According to the directive, the decision to revert to the earlier system was made during board meetings of the Noida, Greater Noida, and Yamuna Expressway Industrial Development Authorities on April 4, 5, and 26, respectively. The government carefully considered the feedback and subsequently decided to terminate the e-auction process for industrial plot allotment in all three authorities. The order emphasized the restoration of the status quo ante April 2022 and stressed the need for a transparent process that takes into account the investor's background and the potential benefits of their investment.

Entrepreneurs have welcomed this decision, as they believed the e-auction process often led to inflated plot rates. PK Tiwari, president of the Industrial Entrepreneurs Association, argued that the e-auction artificially increased prices, putting small entrepreneurs at a disadvantage. The cancellation of the e-auction process had been a long-standing demand of the association, which advocated for equal opportunities for all participants.

Before the introduction of e-auctions, industrial plots were allocated through a combination of draws, interviews, and evaluations by the screening committee and the CEO. Entrepreneurs from all categories were eligible to participate in the process. Plots larger than 2,000 square meters were allocated after evaluation by the screening committee, while plots smaller than 2,000 square meters were determined through a draw of lots.

By returning to the previous method of plot allotment, the development authorities aim to address the concerns raised by entrepreneurs and create a more inclusive and transparent process that promotes the growth of the MSME sector. This decision reflects the government's commitment to fostering a favourable business environment and ensuring equal opportunities for all entrepreneurs in Gautam Budh Nagar.

Next (HC asks Odisha government to frame RERA-compliant rules within three months)

Gautam Budh Nagar authorities scrap e-auctions, revert to traditional allotment process

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