Local bodies fail to attract bidders, blame market slump
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Over 10 major auctions cancelled due to poor response
The cash-strapped local bodies of Ludhiana have been trying to generate some revenue for themselves by holding numerous auctions in the past few months. They have, however, failed to attract bidders and in many instances the auctions have been cancelled due to poor response. While the local bodies blaming a 'slump in the money market', inside sources revealed that action taken by the state government on illegal colonies is the major reason behind the poor response as colony owners, who are the major buyers, are not going for the auctions.
Due to this 'slump' around 10 major auctions organised by the Ludhiana Municipal Corporation (LMC), Ludhiana Improvement Trust (LIT) and Greater Ludhiana Area Development Authority (GLADA) have been cancelled and will be re-scheduled in the coming days.
THE civic body cancelled the bidding on residential land measuring 9,820 sq yds near the Dairy Complex on Hambran road on November 23. The price was reserved at Rs 10,000 per sq yd, but got a hike of just Rs 160 during the bidding process.
No bidder turned up for the auction of commercial land near the Tehsil office on Hambran road. The land measuring 5,917 sq yards, with a reserve price of Rs 40,000 per sq yard, had gone under the hammer on November 21.
The shops at the underpass – opposite Mini Secretariat – are lying empty after two successive failed auctions. In the first auction, held on July 23, only one person turned up while in the second auction on October 10, not even a single bidder turned up. Finally LMC decided to throw open the underpass on November 17 but with closed shops.
On September 27, the civic body was able to sell 10 shops near Jawaddi village for Rs 1.5 crore. But, the auction of four residential plots, each measuring 150 sq yard, was postponed as MC officials felt they were not getting a good price. The reserve price for the plots was Rs 10,200 per sq yard.