Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
The combination of an 18% GST and an increase in the Jantri rates has deterred potential buyers from participating in the recent plot auctions organized by the Ahmedabad Municipal Corporation (AMC). The auctions featured seven plots in prime locations within the city, with a base price of Rs 499.72 crore and a 99-year lease. The plots were situated in Bodakdev, Thaltej, Vastral, and Nikol. However, none of the developers showed any interest in purchasing these plots.
The Ahmedabad Municipal Corporation (AMC) was anticipating a revenue of Rs 600 crore from the plot auctions, but due to the lack of bidders, the auction deadline ended without any sales. The AMC is already facing a financial crisis and has borrowed Rs 700 crore from GSFS to meet daily expenses and carry out development works in the city. Additionally, the civic body has already borrowed Rs 3,000 crore from the World Bank to strengthen the existing stormwater drain and sewage network and has a debt of Rs 1,317.67 crore.
According to a senior official in the estate department of the Ahmedabad Municipal Corporation (AMC), the primary reasons for the lack of bidders in the plot auctions were the recent government notification imposing an 18% GST on plots offered for a 99-year lease, as well as the increase in Jantri rates. They civic body is said to have held high hopes for the sale of the Bodakdev and Thaltej plots but in vain.
In January of last year, the AMC attempted to auction these seven plots, including the one in Bodakdev, for commercial purposes at a base price of Rs 2.28 lakh, with the total cost of the plot being Rs 172.75 crore. This was the highest base price ever set for a plot auction by the AMC
The auction of all seven plots was originally scheduled to take place on February 14, but no developers in the city expressed any interest in purchasing them. The deadline was extended by one month until March 14, but even after this extension, there were still no buyers. Senior officials at the AMC have stated that the plots are unlikely to be put up for auction again for the next six months
The conflict that began in December 2021 between the Ahmedabad Municipal Corporation (AMC) and the Sports Authority of Gujarat (SAG) regarding land deduction has escalated. This is because the SAG has declined to pay the AMC Rs. 16 crores as compensation for failing to deduct land for a proposed town planning scheme in Naroda.
Another problem arose in December 2021, when the state government sanctioned draft TP Scheme No. 125/C and appointed a town planning officer (TPO). The regulations specified that 40% of the 50,000 square meters in five survey numbers belonging to SAG were to be deducted for the construction of roads and open spaces in the draft TP.
On April 19, 2021, SAG wrote to the AMC requesting that the land not be deducted, and changes be made to the TP draft. The AMC agreed to these terms, on the condition that SAG must pay them Rs. 16 crores as compensation. AMC sources claimed that SAG officials did not respond to this demand for compensation. On June 6, 2022, SAG once again requested that the land be deducted, and changes be made to the TP scheme.
Sources report that following the second letter, the TPO sent the draft TP scheme for review because realignments were required for roads and open spaces. However, as SAG has not responded to the compensation demand. Therefore, the AMC has chosen to proceed with the initial TP scheme draft and deduct 40% of the 50,000 square meters owned by SAG. In a recent meeting of the AMC town planning department, sources indicate that it was decided to deduct the land from SAG, as the sports authority has not replied to the compensation demand for the last seven months.
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!
