NDMC to sell properties worth over Rs100 crore

In an attempt to strengthen its financial condition, the North Delhi Municipal Corporation (NDMC) is in the process of auctioning 45 properties worth over Rs 100 crore.

Estimates suggest that the civic bodies can raise about Rs 300 crore by auctioning 45 shops, flats and vacant plots that it owns. The BJP-ruled civic body plans to use the auction revenue to carry out civic infrastructure works in its area ahead of next year’s polls.

To auction its 45 properties, the NDMC is calling bids from interested parties to participate in an online auction. The properties which will go under the hammer are 21 municipal shops on Asaf Ali Road, three vacant plots in different localities under its jurisdiction and 21 built-ups, including quarters, shops and offices.

According to a senior NDMC official of the Remunerative Project (RP) Cell, the minimum reserved price for 21 municipal of different sizes on Asaf Ali Road has been fixed between Rs 90 lakh and Rs 2.05 crore. Similarly, for three plots measuring between 214.04 square metres and 481.60 square metres, the civic body’s minimum reserved price ranges from Rs 7.07 crore to Rs 12.12 crore. “For four residential unit at Nimri Colony, the corporation has fixed a minimum reserve price of Rs 1.51 crore per unit. Minimum reserve prices for the remaining 17 shops and office units have been fixed between Rs 45 lakh and Rs 2.07 crore. Auction of these properties will be held from 11 am on July 28 and 11 am on July 29,” he said.

Another senior officer of the RP Cell said the minimum price has been fixed on circle rate, use factor plus construction cost and area. However, the market value of these is higher than what has been calculated. “Going by the existing market rate for properties in these localities, the department believed the civic bodies will earn around Rs 300 crore or more from the auction,” he added.

RP Cell chairperson Shyam Bala claimed that auctions are being done to increase the revenue. “Our financial condition is known to everyone and we are committed to provide better civic services to the citizens in our jurisdiction. It is an attempt to generate revenue from our own resources. Revenue earned after auctioning these properties will be utilised in providing better civic services and infrastructure in NDMC areas,” said Ms Bala.

The move is seen as an attempt by cash-strapped NDMC to fill its empty coffers. The NDMC has been facing a financial crisis since its trifurcation in 2012.