HYDERABAD: Telangana goverment’s ambitious plan to earn about Rs 900 crore by selling Rajiv Swagruha flats at Pocharam and Bandlaguda evoked almost nil response with only one applicant coming forward to purchase a flat. The mega auction of 3,718 flats ended with the government netting a measly Rs 40 lakh against a projected revenue of Rs 900 crore.
This is the second such setback to the state government in its attempt to earn revenue by selling away land and houses. Recently, the state government conducted a similar auction for about 60 land parcels through the Telangana State Industrial Infrastructure Corporation (TSIIC) but realized only Rs 300 crore out of a whopping Rs 2,600 crore target.
With poor response for the vacant flats at Pocharam and Bandlaguda, the Rajiv Swagruha Corporation has reportedly informed the government about the need to reduce prices to sell the flats.
“For available 3,718 flats, only 43 applications were received. Of these, only one applicant quoted more than the upset price of Rs 2,222 per sq ft against Rs 2,050 per sq ft upset price. The rest of the applicants quoted less than the upset price,” N Balachary, director (administration) of Rajiv Swagruha Corporation told TOI on Wednesday.
The Rajiv Swagruha Corporation, between 2007-2009 constructed single, two and three bed room flats – 2,603 at Pocharam and 2,746 at Bandlaguda. But these homes found few takers as they are located far from city and lacked infrastructure facilities. Slump in real estate market for a few years after the flats were constructed is yet another reason for poor interest.
The Telangana government, which has been eyeing opportunities to raise revenue, decided to conduct an e-auction for the left over flats. Housing minister A Indrakaran Reddy, who visited the project sites before conducting the e-auction, announced the government would develop infrastructure at a cost of Rs 50 crore.
Officials said the Bandlaguda project, located near Nagole has a total of 2,244 flats including 316 ready-to-occupy and 1,928 semi-finished flats that were put up for auction. Similarly, 1,474 flats including 969 ready-to-occupy flats and 505 semi-finished flats were put for auction at Pocharam. The auction was conducted through MSTC Limited between August 7 to 17.
“The ground plus nine floors buildings were divided into exotic and non-exotic categories. The upset prices were fixed at Rs 2,200 per sq ft for semi-finished flats and Rs 2,800 for completed flats at Bandlaguda. Similarly, the price was fixed at Rs 1,700 per sq ft and Rs 1,900 per sq ft for semi-finished and finished flats respectively at Pochram,” an official said.
Interestingly, non-gazetted officers (NGOs) association members recently met housing minister A Indrakaran Reddy and urged him to allot the left over flats to state government employees. “The state government has not taken any decision whether to allot the flats to NGOs or go in for a fresh auction by reducing the prices,” another senior official of Rajiv Swagruha Corporation said.