MYSURU: The Mysuru Urban Development Authority (MUDA) is trying its luck again in sale of premium sites through auction four months after demonetization.
In November 2016, less than 25% of sites put up for auction were sold. On an average, nearly 75% sites are sold during every auction which is a major source of revenue for the agency but there was poor response last time. Of 45 sites, only 11 were sold. The e-auction opened on February 20, and closed on Friday. The allotment is on Saturday.
This time, it has put up 139 corner and intermediate sites in north and west parts of Mysuru, hoping to improve its revenue that has been drying up due to interruption in sale sites in RT Nagar Layout, its dream project. The authorities haven’t decreased the base price, as many people had expected, which may not go in favour of MUDA.
The base price of nine sites in Gokulam III Stage, Vijayanagar Ist and IV Stages and Dattagalli III Stage is between Rs 1.1 crore and Rs 3.36 crore. A site measuring 892.8 sq metres in Vijayanagar is quoted at the highest price of Rs 3.36 cr. The base price of the smallest dimensional site, in Chikkaharadanalli (south Mysuru), is Rs 17 lakh. Usually, MUDA auctions the best sites once in two or three months to raise money.
The real estate was among the worst hit by demonetization and this has taken a toll on MUDA too.
MUDA commissioner M Mahesh told media, “Owing to demonetization, we haven’t increased our base price in the year’s first auction. We didn’t get good revenue in the previous auction as only a few sites were up for sale. He expressed confidence of getting a good response this time and admitted that revenue generation through auction has come down after demonetization.
District registrar CB Nanjundaswamy claimed that property registration has decreased by more than 50 % since January 2017.
MUDA may soon allot sites in RT Nagar. Meanwhile, MUDA may soon start allotting sites in R T Nagar Layout, west Mysuru. This dream project hit a roadblock after a few land losers knocked on the doors of courts to demand higher compensation.
It has been nearly a decade since sites were developed in this layout located nearly 1km from the Outer Ring Road. In all, 2,250 sites of different dimension were developed and over 82,000 applications were received. Sources claim that land losers have agreed for an out-of-court settlement with regard to higher compensation and MUDA is likely to get the high court’s green signal to distribute sites.
MUDA commissioner Mahesh said the issue may be resolved soon. The next hearing is posted for March 8 and a positive outcome is expected. The commissioner said they’ll allotment of sites once they get approval.
Credits ET Realty