The HMDA’s recent land auction aimed at boosting state revenue saw a dismal turnout, with only three of 93 plots sold. Despite high expectations of earning Rs. 500 crore, the auction was marred by steep upset prices and rigid terms, deterring potential bidders.
Hyderabad: The State government’s plans to raise revenue through the Hyderabad Metropolitan Development Authority (HMDA) land auction fell flat following a poor response from bidders.
Of the 93 plots auctioned on Wednesday and Thursday, only three were sold. Two plots were taken up in the Turkayamjal layout and one isolated bit was bid successfully.
The auction included 12 plots in Turkayamjal and 70 in Bachupally. While the upset price for Turkayamjal plots was fixed at Rs. 65,000 per square yard, the price was Rs. 70,000 per square yard in Bachupally.
HMDA officials had hoped to generate Rs. 500 crore from the auction but their expectations were dashed.
Signs of the poor response had emerged even before the process began. A pre-bid meeting held by HMDA witnessed very little participation. Officials acknowledged that the high upset prices and stiff terms were among the main reasons behind the bidders’ reluctance.
