Mohali: 6.64-acre commercial plot rakes in ₹527 crore for GMADA

In what is being considered one of the highest-ever bids for a single commercial chunk in GMADA auctions, a 6.64-acre site in Sector 62 was sold for a staggering ₹527.11 crore, well above the reserve price of ₹290.40 crore.

Located opposite the Phase 7 petrol pump in Sector 62 (Phase 8), the site was purchased by Mumbai-based Phoenix Group.

Under its subsidiary, Casper Realty Private Limited, the group also purchased a 6.5-acre commercial site in Sector 62 for ₹363 crore, surpassing the reserve price of ₹284.09 crore.

According to officials, Phoenix Group owns major malls in metropolitan cities like Mumbai, Bengaluru, Chennai and Delhi, among other places, and is expected to invest in similar commercial ventures in Mohali.

The Greater Mohali Area Development Authority (GMADA) had put on sale four commercial sites in Sector 62, but managed to sell only two, both to the Phoenix Group.

GMADA chief administrator Moneesh Kumar said, “We are highly satisfied with the response. We held meetings with Phoenix Group and assured them of full support and cooperation in various permissions, including building plans. Moreover, we are conducting an assessment of the trees on the 6.64-acre site that will be removed following proper legal process and sanctions.”

In all, GMADA raked in ₹2,505.45 crore from the auction of 35 of the total 50 properties on offer, having a total reserve price of over ₹2,048 crore.

The e-auction, which was held from September 6 to September 16, featured a variety of properties, including six commercial chunks, three group housing sites, 16 SCOs, 22 booths, two school sites and a hotel site.

By the end of auction, GMADA successfully auctioned two commercial chunks in Sector 62, two more in Eco City-1 and Aerocity; all three group housing sites, located in Sector 66; two school sites in Ecocity-2 and Medicity; besides 16 SCOs and 12 booths situated in different sectors of Mohali.

According to officials familiar with the proceedings, GMADA could not sell a chunk of prime land near YPS Chowk, which has been blocked by the Qaumi Insaaf Morcha since January 7, 2023.

The conclusion of the auction on September 16 coincided with the district administration imposing a 26% to 50% hike in collector rates for financial year 2024-25, which is set to increase property prices in Mohali.

Booth goes for whopping ₹7 crore

In another high for GMADA, a booth in the Sector 60 (Phase 3B2) market went for a massive ₹7 crore against the reserve price of ₹2.38 crore.

Deputy mayor Kuljit Singh Bedi said, “The highest bid of ₹7 crore for a booth is shocking, as previously, booths were sold for up to ₹1.75 crore. In fact, showrooms in the Phase 3B2 market, which are much bigger in size, cost around ₹7 crore. The popularity of eateries in the market has shot up the price of the booths. This may be a harbinger for higher realty rates in similar markets of Mohali.”

Notably, just last week, police had booked owners of 15 eateries running from booths at the same market for damaging rainwater gullies and blocking storm drains in an apparent bid to alleviate arising stench for gathered customers.

e-auction held through Railtel Corp website

After the National Informatics Centre (NIC), last year, flagged security concerns with regard to the official website of the Punjab Urban planning and Development Authority (PUDA), the GMADA for the first time held the e-auction of 50 properties through the website of Railtel Corporation of India to ensure transparency.

The NIC report had highlighted that while security audits of government websites are to be carried out every year, PUDA’s website, which hosts e-auctions of properties worth crores, had not had one since 2017.

Following NIC’s report, on October 25, 2023, Punjab chief secretary Anurag Verma had shot off a strongly worded letter to the officers of the state housing and urban department, and directed them to take corrective measures.

Consequently, GMADA’s e-auction of these 50 properties, earlier planned in October, last year was postponed.

“After the concerns were raised, PUDA decided to hold the e-auction through the website of Railtel Corporation of India that has been conducting auctions of various government departments. Complete transparency and security was ensured during the auction of these 50 properties,” said GMADA chief administrator Moneesh Kumar.