The Hindu : Front Page : Sealed tender seals ambitious bidder's fate

Online edition of India's National Newspaper
Wednesday, Feb 22, 2006

Front Page

Front Page

Sealed tender seals ambitious bidder's fate

Staff Reporter

HYDERABAD: The sealed tender continued to have a tantalising hold on the HUDA auctions. Much like what happened on Monday, a sealed tender again fetched HUDA a fanciful price on Tuesday -- Rs.80,000 per sq.yard for a plot.

The dramatic moment was when the highest bidder in the open auction outbid himself in the sealed tender for the same plot.

Surprise element

It was a sealed tender that held the surprise element in Monday's auction too, when HUDA auctioned 5.8 acres of Government land near Jubilee Hills checkpost. The highest bid by Nagarjuna constructions, Maytas and ICICI Venture consortium was enclosed in the sealed tender for Rs.1.42 lakhs.

Files a caveat

HUDA filed a caveat to pre-empt any delay in the transaction of Jubilee Hills land as the unsuccessful bidder Shagun Mall Management threatened to move court. The Chief Minister, it is learnt, too expressed his satisfaction over the way that auction was held.

The auction of residential plots on Tuesday, in the prestigious Nandagiri Hills layout in Jubilee Hills, again turned out to be a goldmine for HUDA yielding a revenue of Rs.73 crores.

400 bidders

Of the 40 plots, 27 were auctioned on Tuesday with over 400 bidders vying with each other. Three plots in the range of 746 sq.yards to 865 sq.yards fetched over Rs.5 crores each, a record again.

B. Kiran Prasad emerged the highest bidder in the open auction by quoting Rs.64,000 per sq.yard for a 360 sq.yard plot. After the open auction, sealed tenders were opened, and lo, Rs.80,000 a sq.yard quoted by Mr. Prasad himself, turned out to be the highest bid which was declared the final price. HUDA earned Rs.2.88 cr from this single plot alone.

Fancy figure

In his anxiety to secure the plot, Mr.Prasad apparently did not leave anything to chance and quoted a fancy figure. Ironically, none went beyond his open auction bid of Rs.64,000 and he ended up shelling out an extra Rs.58 lakhs. The rest of the plots averaged between Rs.60,000 to Rs.70,000 per sq.yard. Only one plot went at the lowest bid of Rs.40,000.

HUDA started auction of leftover plots on Tuesday. The auctions would end on February 27. The proceeds would be spent for land acquisition for second phase of Outer Ring Road.

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