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Huda cancels auction of shopping mall Panchkula, February 17 This decision was taken by senior HUDa officials with the consent of Mr Dheer Pal Singh, Chairman of the HUDA and Town and Country Planning Minister, Haryana. According to sources in HUDA, the earlier auction was cancelled as a financially sound party assured HUDA to give higher bid in the fresh auction. However, HUDA have claimed that auction had been cancelled due to certain technical faults. The authorities claimed that the SM-5 would be given to the party offering bid more than Rs 25.5 crore and deposit Rs 3 crores as earnest money. If the bidder fails to deposit the money, the earnest money deposited by him would be forfeited. The first-ever auction of the shopping malls by the HUDA had drew an overwhelming response with netting Rs 49.66 crore through the auction of two sites in Sector 5. The auction, which was held under the chairmanship of the HUDA Administrator, Mr C.R. Rana, drew a good response with the 26 bidders participating and evincing keen interest in the auction. The reserve price was fixed at Rs 11 crore and the intending bidders were required to deposit Rs 5 lakh to participate in the auction.
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Commercial property made leasehold Chandigarh, February 17 The order will hamper economic activity in the city, as owners will now be mere tenants of the administration, paying ground rent on annual basis. Around two years ago, the administration had decided to auction all property in the city on freehold basis. The new policy comes as a surprise and may discourage buyers, as they will be required to pay 2.5 per cent of the total cost of the plot as ground rent money every year. For instance, if the plot is sold at Rs 2 crore, the bidder will have to pay around Rs 5 lakh per annum for 33 years. This additional expense will add to the running costs of the business. Bidders can at best be tenants and not partners or part-owners, who can swell their property at will. Industry watchers says leasehold system will reduce
Last month the administration had decided to give major properties like shopping malls and an 11-storey tower on leasehold basis. Today’s order will cover all kind of commercial properties, sources said adding that adjoining towns of Panchkula and Mohali will be the main gainers. Official sources in the administration said the move was aimed at keeping some source of revenue for the government in the long run. The land in Chandigarh was running out fast and in the long run the administration would make money through ground rent. The first auction of the newly re-imposed “control raj” is scheduled for February 27, when shopping malls in Sectors 44 and 70 and other properties will go under the hammer.
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Liquor ahatas to be removed Chandigarh, February 17 Well placed sources said the Administration will invite bids from property owners in consultation with wine traders. At present 16 shops running from tin sheds have been targeted. The rent will be fixed for one year and the next year fresh bids can be invited. Tin sheds will not be allowed once the Administration finalises its scheme. Opening of liquor vends and ahatas in tin sheds has been ticklish issue. The Chandigarh Administration has come under criticism from residents. People living in the southern parts of the city have been protesting against makeshift liquor sheds located on land of the MC or the Chandigarh Administration.
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