HYDERABAD: The State government has decided to go ahead with Phase II of the auction of seven plots of prime land, totalling 45.33 acres, in the Neopolis Layout at Kokapet on August 3, hoping to generate revenue to the tune of around Rs 2,500 crore.
In Phase-I of the auction conducted by Hyderabad Metropolitan Development Authority (HMDA) during the Covid-19 pandemic on July 16, 2021, eight parcels of 49.949 acres fetched the State government a whopping Rs 2,000.37 crore. Corporate houses and others who purchased the plots are presently carrying out construction activities.
With a well-developed infrastructure investment of Rs 300 crore in place at Neopolis Layout, HMDA has initiated the second phase of the e-auction, facilitated by MSTC Limited, a Government of India enterprise.
The HMDA has fixed a minimum upset price of Rs 35 crore per acre, with an increment bid of Rs 25 lakh per sq yd or multiples thereof. The earnest money deposit (EMD) required per plot is Rs 5 crore, and interested parties must complete registration by July 31, with the EMD payment due by August 1. A pre-bid meeting is scheduled for July 20, 2023.
The auction will take place in two sessions, with four plots auctioned in the morning and the remaining three in the afternoon. All plots are unencumbered, allowing for hassle-free construction and featuring an unlimited floor space index (FSI) and a multipurpose use zone. The plots boast excellent road connectivity, require no change in land use, are of clear title, offer absolute ownership, and streamlined approvals through a single window process.
The successful bidder must make an initial deposit of 33% of the plot’s sale value (excluding EMD) within seven days. Subsequently, the second instalment, also 33% of the sale value, must be paid within one month, while the balance, including the EMD, must be settled within 90 days from the e-auction date (without interest).
In the first phase, upset bids ranged from Rs 31.20 crore to Rs 60.20 crore per acre, averaging Rs 40.05 crore per acre. The HMDA expects a similar, or even better, response in Phase II of the e-auction.