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The Ahmedabad Municipal Corporation (AMC) is in the process of formulating a new policy to streamline the sale of 49 prime riverfront plots along the Sabarmati River. This move comes after a decade-long effort by the Sabarmati Riverfront Development Corporation Ltd (SRFDCL), a subsidiary of the city's municipal body, to sell these plots to private entities.
Historically, the sale of these plots has faced numerous setbacks. The last official valuation of these lands was carried out by the state government in 2016. However, the process has been marred by delays and controversies over the valuation rates. For instance, in 2016, two plots were set for public auction with one valued at a staggering Rs 7.86 lakh per sq m and another at Rs 2.96 lakh per sq m. These rates were deemed excessive by many industry observers.
Confidential sources within SRFDCL have revealed that a subset of five plots, located on the riverfront's western bank, is currently under consideration for sale, pending the finalization of the new policy.
The SRFDCL's official website indicates that the 49 plots in question constitute roughly 15% of the total riverfront area. In an attempt to attract potential buyers, SRFDCL, in January 2021, provided extensive details about the plots, encompassing aspects like area, height, development rights, and construction specifications. This initiative garnered interest, with 21 out of 28 proposals being submitted by prominent real estate firms.
However, a significant challenge arose in March 2022 when AMC endeavoured to sell a divided plot on the riverfront's eastern bank. The plot was bifurcated, with one section having a Floor Space Index (FSI) of 4 and the other with an FSI of 2. To ascertain a base price for this plot, AMC sought the expertise of the land valuation committee of the Ahmedabad Urban Development Authority (AUDA). The committee, however, opined that the proposed prices were undervalued compared to the rates achieved in the prior auction.
In conclusion, the AMC's decision to revamp its policy for the sale of the Sabarmati riverfront plots underscores the challenges and complexities associated with land valuation and sale in prime urban areas. As the new policy is being crafted, stakeholders and potential buyers will be keenly observing how it addresses past concerns and shapes the future of riverfront development in Ahmedabad.
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