The Nagpur Municipal Corporation (NMC) has received the city’s highest-ever sale price of Rs14,000 per sq ft for a plot on London/Orange City Street Project, taking its revenue from the project to Rs156 crore.
Municipal commissioner Radhakrishnan B, executive engineer Naresh Borkar and their team scripted history by selling the 80,000 sq ft plot for Rs111.75 crore, which comes to around Rs14,000 per sq ft.
Earlier, the highest-ever sale price was for the 26,997 sq ft Air India plot procured by Kukreja Infrastructures in Civil Lines for Rs33.01 crore, a rate of Rs12,227.28 per sq ft.
NMC’s plot is situated between Khamla and Sahakar Nagar in South-West Nagpur. The plot was marred by encroachments for years. A meat market used to function from a major part of the plot. Some space was being utilized by NMC’s operator for garbage transfer station.
The civic body had cleared the encroachments twice before auctioning the sprawling plot. NMC has completed vacated the plot a few days ago.
The auction purchaser — M/s Praful Deshmukh and Praful Ved Infra Private Ltd — have barricaded the plot a couple of days ago. A new footpath along the plot had been encroached by vegetable and fruit vendors. Now, the new barricade has engulfed the footpath and storm water drain network, creating some controversy.
Realty sector expert Pankaj Roshan confirmed Rs14,000 per sq ft is the highest-ever sale price in the city. “NMC received such high rate due to extra floor space index (FSI) and various relaxations made available for the plot. Similar relaxation should be made applicable for plots above 4,000 sq m to improve the realty sector. Too many commercial projects are lined up in the city. Possibility of slide in market rate cannot be ruled out in next 18-24 months for various reasons, including availability of too much commercial space,” he said.
A NMC official said auction purchaser is planning mixed use on the plot for commercial as well as residential. Letter of acceptance has been issued to auction purchaser and agreement is likely to be signed soon.
This is the second plot of the project auctioned by NMC. Earlier, NMC had auctioned 37,000 sq ft plot no-1 for Rs44 crore or Rs11,900 per sq ft.
NMC had obtained the project land from Ordnance Factory Ambajhari in 2007 with an abandoned railway line. Initially, NMC planned to develop the project on PPP model as per directives of Union minister Nitin Gadkari. But no one turned up to take the project. Then, NMC divided the project into plots and started auction.
Now, the civic body is planning to auction plot number 18, where currently the Jaitala weekly vegetable market is situated on the right side of the road connecting Mangalmurti Square to Jaitala.