Those who buy a plot in auction from the Ahmedabad Municipal Corporation (AMC) will now have to pay 1% annual interest on the sum outstanding for up to 270 days after the initial 90-day period, instead of the previous 15%.
The AMC has revised its tender for the auction of 13 plots in the city, which was initially announced on Aug 22. The new terms stipulate that buyers pay 10% of the amount within 10 days and the remaining 90% within 90 days. If unable to make the payment for a valid reason, an additional 270 will be allowed to make the full payment, with a monthly interest of 1% applicable on the unpaid amount during this period.The earlier conditions were that the buyer must pay 10% within 10 days and the remaining 90% within 30 days. If not paid in full after the 30 days, 15% annual interest was charged for up to 180 days.
The AMC had decided to auction these 13 plots, with a base price of Rs 1,156.09 crore, on Aug 22. Bidders must submit their bids and register by Sep 27, with the e-auction scheduled for Sep 30, Oct 1 and Oct 3.
Of the 13 plots, seven are for residential purposes and six for commercial purposes. The AMC expects to generate Rs 1,400-1,500 crore from these. The auction tender was amended twice on Sep 17 to reflect the updated payment terms.
In July, the AMC held an auction for 22 plots. Of these only six were sold, for a total of Rs 174 crore. The process to sell one plot — in Chandkheda to LuLu International Shopping Malls Pvt Ltd for Rs 519 crore — was halted because 10,000 square metres of it was not in the AMC’s possession. Three plot sales — in Shilaj, Bodakdev and Motera — were cancelled because only single bids were received.
