Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
The Mysore Urban Development Authority (Muda) is facing a financial hurdle: securing funds for new development projects. To bridge this gap, they've announced a plan to auction off 200 premium sites and houses within their jurisdiction. This ambitious move aims to generate a significant sum of INR 400 crore, nearly half of Muda's total budget of INR 853 crore.
However, the decision has sparked criticism. The Mysore Realtors' Association argues that Muda's inability to create new layouts has forced them to focus on selling off existing premium plots. This strategy, they claim, has become their primary source of income.
Muda defends their approach. Previously allotted sites to private developers were cancelled due to non-payment or failure to meet criteria. The government initially planned to redistribute these cancelled allotments, but a court intervention halted the process.
These very sites are now being put up for auction. Interestingly, some of these plots were priced as low as INR 8,000 decades ago and have skyrocketed in value to INR 1 crore today. The 200 sites being auctioned are "intermediate" plots, spread across various existing layouts within Mysuru. Currently, Muda is verifying if any of these sites have already been allotted before proceeding.
The auction process will only begin after receiving encumbrance certificates from the sub-registrar's office. While they believe the process can proceed even during elections, they'll seek clarification to avoid complications.
Looking ahead, Muda is pushing for approval of the Basavanahalli Group Housing Scheme, which would involve constructing and distributing multi-level houses. However, their ability to create entirely new layouts seems limited.
Muda acknowledges the lack of available land for new developments. Joint ventures and site-sharing with private developers are also difficult due to the scarcity of large land parcels. Additionally, private developers have been actively securing land, often outbidding Muda in the process.
Given these constraints, Muda views auctioning existing sites as the only viable option to raise funds for future projects. While this strategy might generate much-needed revenue in the short term, concerns regarding long-term development and land acquisition remain.
Muda will need to find solutions to address the land scarcity issue and explore alternative funding options to ensure sustainable development in the future.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
