Delay in MMRDA's auctioning of BKC plot: Is Rs 1,500 crore too much?

MMRDA has extended tender deadline twice for a 50,000 sqm plot in G-Block. The price might be what's keeping bidders away

For its first plot auction since 2007, Mumbai Metropolitan Region Development Authority (MMRDA) has had to postpone the deadline for submission of the tenders twice since May 30, as bidders have asked for more time to commit participation in property auctions.

The 12,486 sq m plot in G-Block has a built-up area of 50,000 sq m
The 12,486 sq m plot in G-Block has a built-up area of 50,000 sq m

The plot, measuring 50,000 square meter built-up area, is worth Rs 1,475 crore and located in G-Block. The new deadline is July 26, and the proposal will be opened on August 1.

It seems all government lands face a similar problem and authorities have forced to extend the dates. The Dharavi Redevelopment Plan, for which tenders were floated in January, has got a fifth extension till June 21.

Sources in real estate industry, however, are surprised to see a delay in the auctioning of the BKC plot, which is a prime location. Though they agree that the deposit sum of Rs 10 crore might be the reason.

A real estate broker from Bandra, said, "Dharavi has too many issues but BKC is a prime spot." Anil Wankhede, the Deputy Metropolitan Commissioner of MMRDA, land department, said they received a good response from bidders (most of them from Singapore) at the pre-bid meeting.

"The sum of Rs 1,500 crore is huge, which requires some time and hence this extension," said Wankhede. The MMRDA plans an international exhibition and a convention centre. Of this an area of 12,486 square meters, with a built-up area of 50,000 square meters, will be up for lease. The plot will be available on lease for 80 years, for a premium of Rs 2.95 lakh per square meter on the built-up area.

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