GURUGRAM: The Haryana govt has formulated the Haryana Municipal Properties Auction Policy, 2024, according to which municipalities across the state will have to identify the properties for sale through e-auction.
MCG is also in the process of identifying the land under its jurisdiction that can be sold through e-auction. According to the policy formed by the urban local bodies (ULB) department, auctions must be conducted through an online platform following prescribed procedures.
The auction notification or bid documentation will be published on a dedicated portal specifically developed for municipal property auctions. Prospective buyers, whether individuals, firms, or companies, must register as bidders on the portal and submit the required earnest money deposit (EMD) within given deadlines.
Participation in auctions will only be permitted after successful EMD payment. The competent authority will organise auctions in two distinct categories: firstly, the auction of individual properties at specific locations for particular purposes, and secondly, the auction of multiple plots/shops at a single location.
“A portal is designed for the e-auction of municipal land. The portal is currently being tested internally before rolling out the e-auction scheme. We are also in the process of identifying the auctionable land that the MCG has under its jurisdiction,” a senior MCG official said.
The portal will facilitate various functions including applicant enrolment, listing of municipal properties for auction and distribution of auction notices and bid documentation. It will enable participants to register as bidders, engage in the bidding process and confirm the winning bidder. The portal will also manage payment processing for the highest bidder, issue bid acceptance notifications and letters of intent. Moreover, it will handle the remaining payment collection from bidders, oversee the distribution of allotment letters from respective municipalities and finalise the conveyance deed execution.
According to the policy, during the first auction round, properties with a reserve price between Rs 1 crore and Rs 5 crore shall require minimum bid increments of Rs 30,000, whilst extended rounds shall necessitate Rs 45,000 increments. Properties exceeding Rs 5 crore in reserve price shall require minimum bid increases of Rs 50,000 in the first round, followed by Rs 75,000 increments in subsequent extended rounds.
Moreover, the winning bidder must submit 10% of the final bid amount within 98 hours after the bid concludes, with the option to adjust the EMD amount. The bidder shall make the first instalment payment of 15% of the final bid amount within 30 days from the bid conclusion date. Following the first instalment, the bidder shall remit the remaining 75% of the final auctioned amount, without any interest charges, within 120 days from the bid conclusion date. As per the policy, EMD shall be fixed at five percent of the property’s reserve price that is set for auction.
“After receipt of the full price of the land, the conveyance deed shall be executed by the concerned municipality within three months of making the full payment and registered under the Registration Act, 1908 (Central Act 16 of 1908) after paying the stamp duty and registration fees by the second/opposite party,” read the policy document accessed by TOI.
In 2022, the MCG initiated a comprehensive plan to develop 224.77 acres of its vacant urban land. Initially, this ambitious venture was projected to yield approximately Rs 10,000 crore in revenue. The subsequent increase in circle rates has enhanced the potential income beyond the original 2022 estimates. According to official MCG records, unoccupied urban parcels are situated across multiple sectors including 33, 35, 58, 61, 62, 65, 75, 102, 102A, 103, 106, 108, and 109. These valuable urban plots present significant opportunities for MCG to establish various developments, encompassing residential complexes, commercial spaces, institutional facilities, and essential infrastructure.
