MMDRA calls off auction after bidders point out that HC order restricts new construction till Deonar dumping ground issue is sorted
The MMRDA has called off its planned auction to lease out a 50,000 sq m land plot in the Bandra Kurla Complex and raise a sum in the vicinity of Rs 1,500 crore. As prospective bidders pointed out, as per the Bombay High Court’s March 1 order, there could be no new construction in Mumbai till the civic body had figured out solid waste management at the Deonar and Mulund dumping ground. So, there would be no purpose to acquiring land on which they wouldn’t be able to develop anything.
The G Block area in BKC that was to be auctioned
ADVERTISEMENT
MMRDA had called for an urgent meeting on Monday to discuss this issue. The decision on the matter was left up to Metropolitan Commissioner UPS Madan, and on Tuesday, it was decided that they wouldn’t continue with the auction. This was the first land parcel that the MMRDA had put on auction since 2007.
MMRDA chief UPS Madan
Even as builders would usually line up for MMRDA’s plot auctions, the authority has seen a major decline in interest that failed to attract sufficient bidders, despite multiple deadline extensions — first till July 26 and later till August 10.
Earlier, the MMRDA officials claimed they got a good response, but the extension was given to allow bidders to raise the money. However, Anil Wankhede, Deputy Metropolitan Commissioner, Land Cell, that was carrying out the auction, said, “Most of the bidders are foreign companies. During the pre-bid meeting, a question was raised as to how new construction would be carried out after the HC order. So bidders said they cannot put money amounting to the tune of R1,500 crore and then do nothing.”
He added, “There was also the issue of completion of due process under section 37(1) of the MRTP Act for modification with respect to allowing up to 30 per cent of residential construction in a commercial area in BKC. Considering that both of these issues need to be resolved before closing of the bid process, MMRDA has decided to withdraw the on-going process for the time being.”
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
