In a significant enhancement of its non-tax revenue, the Nagpur Municipal Corporation (NMC) has finalized a deal worth Rs129 crore for the redevelopment of the deteriorating Sokta Bhavan at Gandhibagh into a contemporary commercial complex, which will also include a Citizen Facilitation Centre.
This project, awarded on a design-build-finance-operate-and-sale (DBFOS) basis, represents one of the highest-value redevelopment contracts undertaken by the civic body in recent years, particularly following several unsuccessful attempts to attract bidders.
On November 6, the civic administration issued a Letter of Acceptance (LoA) to PrafulVed Infra Ltd, whose lump-sum bid of Rs129 crore was deemed the highest (H1). The proposal received approval from the standing committee and was subsequently ratified by municipal commissioner Abhijeet Chaudhari. Additionally, the developer is required to pay a premium of Rs4.5 crore within 30 days of the effective date.
According to the LoA, the firm must provide a performance security of Rs7 crore, establish a Special Purpose Vehicle (SPV), and execute the development agreement within the designated timeframe. Previously, Sokta Bhavan had been underutilized for over a decade due to disputes, delays in the tendering process, and structural decline.
The bhavan was built in November 2003 at the south-west corner of Gandhibagh Garden, which previously housed a library and the NMC’s Gandhibagh zone office. Since both establishments relocated, the bhavan has remained abandoned. The project was initially proposed by former mayor Dayashankar Tiwari during his tenure as standing committee chairman in 2012-13.
The NMC made several attempts in 2016, 2019, 2021, and twice in 2024–25 to attract bidders, all of which were unsuccessful. Ultimately, the civic body reduced the base price by 11% — from Rs144 crore to Rs128 crore — in an effort to rekindle developer interest, amid concerns that the original valuation was excessively high for a project requiring significant investment. The revised price was approved by the high-level policy committee.
PrafulVed Infra’s chairman, Praful Deshmukh, informed that the project’s scope has experienced considerable modifications over the years. “Initially, the area was 67,000 sq ft. However, following objections from local residents, it was scaled down to 37,000 sq ft — approximately 3,500 sqm,” he stated.
The company is now planning a more extensive vertical expansion. “We are proposing three basements along with a structure comprising ground plus 16 or 17 floors. Parking poses a significant challenge in that region, so we aim to maximize available space. One basement will be designated for two-wheelers — accommodating nearly 200 to 250 per floor — while the other two will be allocated for four-wheelers.
Our goal is to provide parking for about 1,000 two-wheelers and around 250 four-wheelers,” Deshmukh explained. NMC has been facing challenges with decreasing tax revenues and ongoing budget shortfalls, prompting it to monetize old and unused properties. “Sokta Bhavan has remained a dormant asset for years.
Transforming it into a high-value commercial complex will not only generate long-term revenue but also provide an upfront amount of Rs129 crore,” remarked a senior NMC official. According to Deshmukh, construction could commence shortly after the necessary formalities are completed.
If all goes according to plan, we aim to begin work by January. We are targeting the possession of the ground and first floors by January 2027, with full possession of the building expected by January 2028, he added.
The project is anticipated to alleviate congestion in the bustling Gandhibagh wholesale market by introducing organized commercial spaces, wider corridors, and structured parking. Additionally, it will feature an integrated Citizen Facilitation Centre to enhance the delivery of civic services.
With the Sokta Bhavan agreement finally finalized after a decade-long effort, officials believe it could serve as a model for the future modernization of aging municipal properties throughout Nagpur.
