NEW DELHI: The auction of Commonwealth Games Village flats brought about a windfall for Delhi Development Authority
on Monday. The land owning agency recorded a net profit of nearly 120%
by auctioning a five-bedroom flat at Rs 24,137 per sq ft while it was
bought at Rs 11,000 per sq ft from private developer Emaar MGF
three years ago. DDA had received bids for 87 flats over the last one
month, which were opened at Vikas Sadan on Monday to ascertain the
market price for selling rest of the flats in its kitty at the Games
Village.
DDA had bought 333 flats from Emaar MGF at Rs 11,000 per sq ft by spending Rs 769 crore in all. If DDA goes on to sell rest of these flats at the price recorded on Monday, it may end up making a profit of nearly Rs 900 crore. DDA owns a total of 711 flats at the Games Village, which are now likely to be sold to public sector undertakings and government agencies.
The highest bid received at the auction was of Rs 7,31,87,969 (Rs 24,137 per sq ft) against a reserve price of Rs 5,21,87,951 crore (Rs 17,205 per sq ft) - an increase of 40.23%. The five-bedroom flat at tower-14 was auctioned to Delhi State Cooperative Bank Limited. The highest rate offered was actually Rs 24,195 per sq ft for another flat in the same tower but since its area was smaller, the final amount was Rs 7,27,06,472. DDA officials were ecstatic after the auction, especially in the aftermath of Shunglu Committee pulling it up for buying flats from the private developer at a bailout of Rs 11,000 per sq ft in May 2009. Monday's bid was all DDA needed to refute the allegation of causing a loss to the exchequer.
"The response of PSUs, banks and autonomous bodies was very good. We received multiple bids for specific flats. Normally, only 50-60% flats receive bids in such auctions but we managed to receive them for 87 out of 110 flats. The average bid on Monday was Rs 21,000 per sq ft," said Asma Manzar, commissioner, DDA housing.
The CWG flats, which were being auctioned on an experimental basis, turned out to be a golden goose for DDA. State Bank of India successfully bid for maximum number of flats. "We won 32 of the 36 flats, which we had bid for in tower 1 and 14," said Umesh Goyal, an SBI official.
Other PSUs including HPCL, ONGC, Punjab & Sind Bank, Delhi State Cooperation Bank Limited, Agriculture Insurance Cooperation of India (AICL), and National Insurance Company Limited also successfully bid for a number of flats.
The authority received over 218 bids for flats in towers 1, 9 and 14. Though private bidders were outdone by the PSUs, a few like Sanjeev Dangi were lucky. "It is a dream come true for me. The bidding was very competitive but I am delighted at having secured a flat in the CWG Village. I am elated," said Sanjeev Dangi, a businessman from Jaipur, who now owns a three-bedroom flat in Tower 9. He had bid Rs 3.92 crore for it.
DDA had bought 333 flats from Emaar MGF at Rs 11,000 per sq ft by spending Rs 769 crore in all. If DDA goes on to sell rest of these flats at the price recorded on Monday, it may end up making a profit of nearly Rs 900 crore. DDA owns a total of 711 flats at the Games Village, which are now likely to be sold to public sector undertakings and government agencies.
The highest bid received at the auction was of Rs 7,31,87,969 (Rs 24,137 per sq ft) against a reserve price of Rs 5,21,87,951 crore (Rs 17,205 per sq ft) - an increase of 40.23%. The five-bedroom flat at tower-14 was auctioned to Delhi State Cooperative Bank Limited. The highest rate offered was actually Rs 24,195 per sq ft for another flat in the same tower but since its area was smaller, the final amount was Rs 7,27,06,472. DDA officials were ecstatic after the auction, especially in the aftermath of Shunglu Committee pulling it up for buying flats from the private developer at a bailout of Rs 11,000 per sq ft in May 2009. Monday's bid was all DDA needed to refute the allegation of causing a loss to the exchequer.
"The response of PSUs, banks and autonomous bodies was very good. We received multiple bids for specific flats. Normally, only 50-60% flats receive bids in such auctions but we managed to receive them for 87 out of 110 flats. The average bid on Monday was Rs 21,000 per sq ft," said Asma Manzar, commissioner, DDA housing.
The CWG flats, which were being auctioned on an experimental basis, turned out to be a golden goose for DDA. State Bank of India successfully bid for maximum number of flats. "We won 32 of the 36 flats, which we had bid for in tower 1 and 14," said Umesh Goyal, an SBI official.
Other PSUs including HPCL, ONGC, Punjab & Sind Bank, Delhi State Cooperation Bank Limited, Agriculture Insurance Cooperation of India (AICL), and National Insurance Company Limited also successfully bid for a number of flats.
The authority received over 218 bids for flats in towers 1, 9 and 14. Though private bidders were outdone by the PSUs, a few like Sanjeev Dangi were lucky. "It is a dream come true for me. The bidding was very competitive but I am delighted at having secured a flat in the CWG Village. I am elated," said Sanjeev Dangi, a businessman from Jaipur, who now owns a three-bedroom flat in Tower 9. He had bid Rs 3.92 crore for it.
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