JAIPUR: Land auction policy is in the process of implementing by the Rajasthan state government soon as the initial draft of the policy has already been prepared.
At a meeting chaired by urban development and housing minister Shanti Dhariwal here recently, the committee constituted to prepare the policy discussed the draft.
The committee has provided several suggestions such a reducing the reserve price, earnest money deposited during auction, among others.
The state government will bring the amendment in the state’s land disposal rules after discussing the suggestions. As the real estate market is facing a prolonged slump, the civic bodies failed to earn revenue after selling their housing plots.
An official informed that the committee had suggested to evaluate a new formula to calculate the auction base price as per district lease committee (DLC) and latest market price.
An official said that at present, there are many flaws in the auction system, due to which it’s difficult to sell land and earn revenue. The developers are provided with less time to pay the entire amount after they win the land bid. The window period to deposit entire amount will also be increased.
Citing an example, a source said JDA was hoping that it could earn revenue from auctioning its land, but that too was a difficult task as buyers were not showing interest. The craze that was witnessed among buyers to purchase shops at the newly constructed SMS Hospital underpass faded just after JDA increased the base price for auction.
The civic body increased the base price five times after receiving exponentially high rates in the previous auctions. According to officials, the JDA increased the base price of the bid from Rs 3 lakh per square metre to Rs 15 lakh per square metre. But this decision discouraged buyers from participating in the auction.
A source at JDA said that a SMS underpass, JDA has constructed 21 shops. So far, three shops have been sold. But in the last four auctions, not a single bidder participated in the process. Moreover, buyers who purchased shops are not coming forward to deposit the entire amount.
Source: ET Realty
Image Source: icon-icons.com