Two CDA Commercial Plots Auction At Over 2 BillionFriday, June 08, 2012
In a recent auction, the Capital Development Authority (CDA) has earned more than Rs 2 billion against Rs 1.9 billion that were fetched at a previous auction held on 6th April.
The previous auction was cancelled because the CDA’s Estate Management Wing officials set bids lower than expected. This time around, officials believe that the bids are far ‘better’. Influential bidders have managed to manipulate the bidding system secretly with the CDA officials while offering them monetary benefits. According to a senior CDA official, “The only way to make the bidding process transparent is to conduct open bidding in which anyone can take part.”
The last highest bid of plots is declared as the reserve price of the plots for next auction. The reserve price was set keeping in view the current market situation. Everyone knows that market is not performing as it once was. It recorded a high level back in 2005 and 2006. Currently, first plot, 56-D, is auctioned at Rs 1.33 billion with the highest bid of Rs 273,000 per square yard while in previous auction, the plot received the bid of Rs 1.2 billion at the rate of Rs 262,000 per square yard.
The second plot is auctioned at Rs 725 million at the highest bid of Rs 272,000 per square yard. In the last auction, the same plot received the highest bid of Rs 669 million at Rs 251,000 per square yard.