GURGAON: Cash-strapped Huda will, for the first time, abandon its policy of lucky draws to auction residential plots in the city and allot them to the highest bidder. The move is aimed at generating the maximum revenue possible for the authority that is reeling under a financial crisis and does not even have enough funds to even pay its employees. A total of 48 residential plots ranging from 50.58 square metres to 505.85 square metres in different sectors of Gurgaon will be up for grabs during the e-auction scheduled on November 8 and 15.
The authority has fixed a reserve price for each plot. Those interested will have to register on the official website of Huda and deposit 2% of the reserve price to participate in the auction. Plots in sectors 28 and 47 will be on auction on November 8 while those in sectors 5, 6, 9 and 14 will go under the hammer on November 15.
Realty experts, however, feel that in view of the current market sentiment, Huda may find difficult to find buyers. Pradeep Mishra, a property dealer, said, “It will be difficult for Huda to get a high price for its residential properties. The market is down at the moment.” Huda had put on auction 91 commercial properties in Gurgaon, Dharuhera and Rewari in March, of which it managed to sell only 10. But in its September auction, the authority collected Rs 135 crore by selling off three plots for schools.
In another attempt to generate revenue, Huda tweaked its payment policy earlier this month by reducing the time for payment of instalments for the property purchased in auction from six years to 120 days. Before this, buyers of Huda properties had to pay the amount in six instalments. For residential properties, buyers could pay annual instalments over six years, while for commercial and institutional properties, they could pay in six instalments over three years.
Under the new policy, which will be applicable from the November auction, the entire amount will have to be paid within 120 days from the date of auction. A Huda official explained that successful bidders will have to pay 10% of the total price of the plot at the end of the auction and another 15% within 30 days. The remaining 75% of the amount will have to be paid within 120 days.
“The deal stands cancelled in case of failure to deposit the money within the stipulated time allotment without any notice. Also, the money deposited or 25% of the total amount will be forfeited,” said a senior Huda official, adding possession of the plot would be given 30 days after the full payment.
Credits The Times of India