Buyers fail to pay bid money for Mokila plots
HMDA\'s attempt to raise money for the government proved futile
Hyderabad: After receiving record bids for its plots at Mokila, the HMDA’s attempts to raise money for the government proved futile as bidders failed to shell out the purchase price.
Out of 50 plots offered for sale in phase I, HMDA managed to sell only 18, while 32 found no buyer. In the second phase, 300 plots were put up for auction. Only 170 were auctioned.
HMDA forfeited Rs1 lakh of Earnest Money Deposit (EMD), which each of 162 defaulting bidders paid. Cumulatively, HMDA got Rs1.62 crore.
According to an HMDA official, an investor had bid for several plots but paid the full purchase money only for one or two plots.
“In e-auction of Mokila Phase I and Phase II, one single person has bid over eight to nine plots, but paid the full amount for only one or two plots. Following this, his EMD amount was forfeited," said the HMDA official.
According to an industry expert, Mokila plots got a lukewarm response due to the greed of a few people who have large land banks in the area.
“The average price in a good gated community located in Mokila ranges from Rs60,000 to Rs65,000 per square yard. But some people intentionally jacked up the price by placing higher bids, without buying even one plot.
Following this, several investors and buyers backed out as they felt that the prices were inflated,” said V. Rajashekar Reddy, general secretary of the Confederation of Real Estate Developers Associations of India (Credai), Hyderabad.