Mohali: Only 2 of 6 GMADA group housing sites draw buyers

The Greater Mohali Area Development Authority (GMADA) managed to sell only two group housing sites (12.23 acre) out of the six (48.72 acre) on offer, raking in ₹403.75 crore during an e-auction that ended on Tuesday.

GMADA had set ₹1,214.52 crore as the reserve price for the six sites.

The e-auction had started on April 13 and continued till noon on Tuesday.

Vikas Parks Private Limited bought 8.71-acre group housing land in Wave Estate in Sector 99 for ₹262.75 crore against the reserve price of ₹217.15 crore. Singla Builders purchased 3.52 acre in Wave Estate in the same sector for ₹141 crore against the reserve price of ₹87.79 crore.

Under the auction, allotment will be made upon receiving 10% of the bidding amount and possession upon 25% payment. Cesses shall be charged extra.

As much as 7.5% rebate is there on balance payment if paid in lump-sum within 120 days from the allotment date.

A site with the highest reserve price of ₹463.93 crore in Mohali Hills, Sector 110, measuring 18.62 acre went unsold. Another site — 7.92 acre — in Unitech Housing Society in Sector 97 had ₹197.48 crore as the reserve price but it too failed to attract buyers. For both the sites, bidders had to deposit ₹5 crore earnest money each for participation in the auction.

Two sites in Pearls City in Sector 104 — 4.98 acre having a reserve price of ₹124.20 crore and 4.97 acre with ₹123.97 crore as reserve price — too met the same fate.

For these sites, ₹2 crore earnest money each had to be deposited. Notably, the Pearls City projects have remained in controversy as many investors were fighting legal battles.

GMADA estate officer (plots & auction) Ravinder Singh said the unsold sites would again go under the hammer. He said GMADA had converted EWS land into group housing sites and after selling them, the developing authority would acquire land for construction of EWS accommodations in Mohali.

The land put under auction was earlier meant for the economically weaker section (EWS) but converted into residential group housing sites after the Punjab government approved a policy in February to e-auction such land across the state. The government will acquire 1,500 acre across the state to build EWS accommodations for the needy.

During an e-auction from March 12 to 22, the GMADA had earned a staggering ₹1,986.82 crore in revenue from the sale of 368 properties. It also earned bumper revenue last Diwali by generating ₹1,893.80 crore from the auction of 345 properties.