HYDERABAD: Kokapet land auctions, which created stir in July last for the unheard of staggering bids, have now turned into an embarrassment for the Hyderabad Urban Development Authority (HUDA).

The delay in handing over Golden Mile plots to successful bidders owing to a title deed dispute has not only made bidders restive, but has also put the HUDA in an awkward situation. The unexpected litigation has marred the reputation that HUDA lands are free of legal disputes.

Some bidders have already sought refund of the amount in view of the delay but, the HUDA, hopeful of a favourable court decision, maintains that only the Chief Minister can take such a decision.

Bid amounts

The sensational auctions had fetched Rs.10 crores on an average per acre with the highest bid going up to Rs.14.5 crores per acre. While the total bid amounts stood at Rs.702 crores, bidders had deposited Rs.400 crores by the time the High Court issued status quo over a writ claiming ownership to 1,638 acres in Kokapet, including 70 acres auctioned by the HUDA.

Fifteen plots, ranging from two to six acres totalling to 70 acres, were auctioned with a promise of being handed over to the bidders at the earliest with all amenities. The bidders, who secured bank loans by submitting project reports for their proposed projects at Kokapet, are now worried.

"We quoted high prices as we believed the lands would be litigation free. Now we are not sure when our projects will begin. But we have already started paying interest to the banks," says a bidder.

No Telangana factor

The recent lukewarm response to the HUDA's Tellapur integrated township is seen by some as a fall-out of Kokapet land dispute. `It has undermined bidders' confidence in HUDA projects. Telangana factor has nothing to do with it," say some market watchers.

"We are aware of bidders' predicament. We are waiting for the next hearing to submit to the court that pending settlement of title deed issue, full permission be granted to the bidders to begin their projects.

If the court verdict regarding title deed is against the Revenue Department, then the amount would be returned to those who had filed the writ claiming ownership of land," HUDA officials say. Meanwhile, some investors who did not participate in the auctions, evinced interest in taking plots if some withdrew their amounts, it is learnt.

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