The Hindu : New Delhi News : Auction of hotel plots fails to attract buyers

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Tuesday, Sep 26, 2006
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New Delhi

Auction of hotel plots fails to attract buyers

Staff Reporter

Of 10 plots only one goes under the hammer `Efforts are being made to find the reasons for the failure'

NEW DELHI: The much-awaited auction of 10 hotel plots by the Delhi Development Authority on Monday - with a combined reserve price of Rs.2,669.13 crore - turned out to be a damp squib with just one of the plots going under the hammer as buyers failed to turn up for the remaining nine.

While the DDA had hoped to rake in the moolah through the auction of the 10 hotel plots, which were expected to fetch a huge price in view of the appreciation of land prices in the market, the auction did not attract many buyers, apparently due to the high reserve price.

During the auction, two-thirds of the value was expected to come from four plots at Dwarka, for which the total reserve price was Rs.1,812 crore. However, not one of these plots was sold. Similar was the fate of five other plots.

The only plot which found a bidder was a 7,127 square metre plot at Mangalam Place in Dwarka which was sold for Rs.48.05 crore, only Rs.5 lakh more than the reserved price of Rs.48 crore. Incidentally, this was one of the two sites in Rohini that the DDA had failed to sell in its last auction.

About the failure of the auction, DDA spokesperson Neemo Dhar said efforts were being made to find the reasons for it. "Many aspects, including costing, would be looked into,'' she added.

However, for market analysts the turn of events has come as a slight shock.

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