Just a month ago, Ahmedabad Municipal Corporation (AMC) made headlines with its largest ever sale of land in value terms, to LuLu International Shopping Malls Pvt Ltd for a staggering Rs 519 crore. However, AMC has reportedly been unable to provide full possession of the land to the buyer, as it doesn’t have complete ownership of the plot.
The sale proposal placed before the standing committee states, “The 66,168 sq m plot in Chandkheda will be sold to LuLu International Shopping Malls Pvt Ltd at the rate of Rs 78,500 per sq m. However, approximately 10,672 sq m of this plot is currently under cultivation and the municipal body is yet to obtain full possession of the whole plot.”
On June 18, the Corporation had auctioned five plots in Chandkheda and Motera, with LuLu International emerging as the highest bidder for the Chandkheda plot. The company was to pay Rs 519 crore, compared to the base price of Rs 502.87 crore.
The standing committee earlier had approved the sale of these plots rather than a 99-year lease. In all, the AMC was to get Rs 937 crore from the auction of all the plots in June.
A senior civic body official admitted that the necessary formalities for executing the auction for most of these plots could not be completed. The delay, it is learnt, is primarily due to complications arising from the land parcel sold to Lulu Group in Chandkheda.
While the deal has been inked, the AMC is yet to transfer complete possession of the plot. Efforts are underway to hand over around 55,000 sq m of the land to Lulu of the 66,168 sq m that was auctioned to the company.
The corporation had put 22 plots on the auction block in June, with six finding buyers. An estate department official said a crucial procedure of the standing committee nod was still awaited. The delay in finalising the deals was likely to impact real estate projects in the pipeline.
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