The Hyderabad Metropolitan Development Authority (HMDA), which has created record of sorts through the auction of its stray plots, is a long way from realising the total amount from the auction.
Reasons abound for this predicament, starting from highest bidders defaulting on payment, some plots getting caught in legal wrangles, and technical faults. A few others have chosen to pay in instalments, and it will be some time before they pay in full.
A total of 189 plots went under hammer at the e-auction held for 210 plots in April last week. As per the news shared by HMDA officials at that time, 21 plots did not receive any bid owing to their locations far from the city.
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The stray plots for which bids were called included some left from the HMDA layouts,and some others gifted to the HMDA from private layouts. They covered an area of 87,000 square yards, and were located in areas including Pocharam, Dulapally, Mankhal, Mamidipalli, Bhuvanagiri, Bachupalli, Jalpally, Shankarpally, Ghatkesar, Ameenpur, Gopanpally, Nallagandla, Chandanagar, Saroornagar, Neknampur, Nandagiri Hills, Attapur, Shaikhpet, Vanashtalipuram, Mailardevpally, Tellapur and Madhapur among others.
After the sale, which garnered close to ₹352 crore on paper, the urban development authority was expected to be flush with funds for its developmental activities elsewhere. However, the ground reality is different.
Thirty seven bidders, most of them for the plots in private layouts, have failed to pay the money before the deadline, thereby forgoing their Earnest Money Deposit (EMD). “Some among them raised their bid without even checking the plot physically, and after finding out the details, backed out,” said Metropolitan Commissioner, HMDA, T. Chiranjeevulu.
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A few have entered wrong amount online by mistake, and could not pay it even after winning the bid. The e-auction provisions apparently do not allow HMDA to invite the second highest bidder where the highest bidder has defaulted.
Of the remaining plots, 80 got caught in court cases after the auction was announced. Those approaching the court claimed that the plots in question were earmarked for open spaces or parks, and could not be sold. Officials dispute this claim. “Those who went to court are squatters on the plots for close to 30-40 years. They do not have any legal documents to stake claim on the sites, hence are trying to stop the sale through other means,” Mr. Chiranjeevulu said.
Though these bidders have paid the EMD, and are ready to pay the remaining amount, the same will be collected and ownership transferred only after court clears the plots, which might take a long time. Officials said remaining buyers are in the process of paying the instalments.