Cash-strapped civic body to auction vacant properties


After sitting on properties worth crores for years, the cash-strapped North Delhi Municipal Corporation (NDMC) will soon be auctioning vacant plots, flats and shops to raise funds.

The civic body has identified three empty plots and 21 built-up flats for offices, quarters and shops with a total minimum reserve price of Rs.55.25 crore.

These will be auctioned on long-term leases of either 99 or 60 years.

In addition, 16 shops will be up for rent on minimum monthly licence fee of either Rs.8,800, Rs.5,700 or Rs.4,600. These will only net the Corporation Rs.1.22 lakh a month, though the bidders will have to deposit earnest money.

The Corporation had decided to auction the properties in February this year after a survey of its properties to see how many were lying unused and could be put on the block.

“There were some technical problems. But, now we have adopted e-auctioning so the process will be transparent. Bids will be taken for 24 hours from August 23 to 24 through an online process,” said North Delhi Mayor Ravinder Gupta.

Standing Committee chairperson Mohan Bhardwaj added that the civic body is expecting to raise more than Rs.50 crore from the auction.

“We will be able to pay pensions, which we haven’t in a year due to our financial crisis, with the money raised from the unused properties,” said Mr. Bhardwaj.

He said there are other municipal properties that are lying unused or not being used to their capacity. The civic body is identifying more properties that can be auctioned in the next round.

As much as Rs.50 crore is expected

to be raised

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Printable version | Jan 27, 2020 8:40:54 PM |

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