The Greater Mohali Area Development Authority has launched a fresh e-auction for 42 prime properties. This auction reveals a sharply uneven distribution of value across the portfolio. Two massive sites alone account for nearly half of the total reserve price.
Dominance of Two Major Plots
The cumulative reserve price for all 42 properties stands at Rs 5,432 crore. However, the two largest plots carry a combined reserve price exceeding Rs 2,524 crore. This means these two sites represent close to 50% of Gmada's revenue expectations from this auction round.
Details of the High-Value Parcels
One of these premium parcels is a 27.77-acre site located in Sector 62, Mohali. It has been assigned a reserve price of Rs 1,213 crore. The second major plot spans approximately 30 acres in Eco City-I. This plot is listed for Rs 1,311.18 crore.
Contrast at the Lower End
At the opposite end of the spectrum, the auction includes much smaller properties. Five small plots in Sector 59 have the lowest reserve price of just Rs 57 lakh. This underscores the wide variation in plot sizes and categories available in this sale.
Background of Unsold Inventory
All 42 sites in the current auction are part of Gmada's long-pending unsold stock. These are plots that failed to attract bidders in four to five previous e-auction attempts. The unsold inventory includes residential plots, SCOs, group housing sites, industrial and institutional plots, and hotel parcels. Many of these properties have remained stuck for nearly five years despite repeated auction efforts.
Government Intervention to Boost Demand
To tackle the persistent lack of demand, the Punjab government recently approved a significant policy change. Authorities have sanctioned a 22% reduction in reserve prices. This rationalisation aims to revive market interest. The state now expects to generate between Rs 5,000 crore and Rs 10,000 crore from the revamped pricing strategy.
New Pricing Framework
Under the new framework, reserve rates are being recalculated based on independent valuations. The process involves obtaining assessments from three independent valuers. The average of these three assessments is being adopted as the revised reserve price, subject to necessary approvals.
These newly computed prices will remain valid for one full calendar year. If sites remain unsold even after this revision, the policy allows for an additional 10% price cut. Following that, a further 5% reduction is permitted after due approvals.
Future Auction Plans
Gmada officials indicate that more properties are likely to be brought under the hammer soon. This will happen once the ongoing e-auction concludes. The authority is actively working to clear its backlog and boost revenues. The strategy involves adopting more realistic, market-linked pricing to attract buyers.
