Hyderabad

Recession and separate Telangana issue continue to haunt auctions of Hyderabad Metropolitan Development Authority (HMDA). Though the urban development authority has put up 229 plots for auction, so far only 85 bidders have come forward to participate in the bidding process. The e-tendering closes on July 9, while the bids will be opened on July 12.

HMDA has invited bids for 229 leftover plots in Asifnagar (one plot), Miyapur (102 plots), Mushk Mahal Residential complex (5 plots), Nallgandla complex (98 plots), Nandagiri Hills (one plot), Ramchandrapuram (Chandanagar) (20 plots) and Tellapur (2 plots) on June 21.

Though the HMDA had reduced upset price for plots to Rs 10,000 per square yard from the earlier price of Rs 18,000 per sq yard, there are no takers for the plots. This time ICICI and Hudco have agreed to provide loans to bidders at eight per cent interest. The earnest money deposit (EMD) to participate in the bidding is between Rs two lakh and Rs five lakh based on the plot size and area.

Sources said in earlier auctions, especially during the real estate boom time, many non-resident Indians (NRIs) evinced interest and participated in bidding of plots as the HMDA-owned plots had clear titles and were disputefree. However, in the latest bidding, NRIs seem to have distanced themselves from the bidding process.

Of the bidders who came forward to participate in the auction, many of them have opted for plots in Miyapur and Nallagandla areas where 102 plots and 98 plots have been put for sale respectively. There are no takers for plots in areas like Asifngar and Nandagiri Hills. “Everyday, 20 to 30 prospective buyers are visiting sites like Miyapur, Nallagandla and Ramachandrapuram, but when it comes to e-bidding, the response is not encouraging,” a site incharge said.

Officials attribute the poor response to the ongoing byelections for 12 assembly seats in Telangana region in particular and separate Telangana issue in general. “The situation will be like this till December, 2010, the deadline for the Srikrishna Committee,” the officer added. HMDA officials also agree that the Kokapet land auction getting into legal wrangles had its impact on the image of the authority.

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