Two commercial plots fetch CDA over Rs2bn
ISLAMABAD, June 7: The capital’s civic authority on Thursday re-auctioned two mega commercial plots in Blue Area but the bids could hardly make any difference.
In the fresh auction, the Capital Development Authority (CDA) fetched more than Rs2 billion against Rs1.9 billion received in the last auction that was held on April 6.
The previous auction was cancelled as the officials of the CDA’s Estate Management Wing had termed the bids quite ‘low’. However, this time the officials believed the fresh bids were ‘better’.
“We believe that this time better bids were given by the bidders,” said head of the auction committee and the CDA’s Member Planning, Aziz Qureshi.
It has been learnt that some influential persons managed to manipulate the bidding process in connivance with the CDA officials promising them monetary benefits.
“The only way to make the process of bidding transparent is conducting open-bidding in which not only the pre-qualified bidders but
anyone can take part,”
said a senior official of the CDA who did not want to be named.
According to the CDA rules, the last highest bid of plots in same the location is declared as reserve price of plots for the next auction.
However, the CDA member planning said the reserve price was set keeping in view the market conditions. “You can’t compare price of the plots in 2005 and 2006 with the present real estate rates because at that time the market had reached a record high,” he said.
Of the two, first plot – 56-D – measuring 4,888 sq yards was auctioned worth Rs1.33 billion with the highest bid of Rs273, 000 per sq yard. In the last auction the same plot had received the bid of Rs1.2 billion at the rate of Rs262, 000 per sq yard.
The second one – Plot No. 2 – in the same commercial centre measuring 2,666 sq yards was auctioned worth Rs725 million at the highest bid of Rs272, 000 per sq yard.
During the last auction which was cancelled by the authority the same plot had received the highest bid of Rs669 million at Rs251, 000 per sq yard.
The city managers also offered a plot in Super Market with the starting rate of Rs166, 000 per sq yard but no bidder showed interest in it and asked the CDA officials to include it in the second day of auction to be held on Friday.
On the second day, the CDA will offer three more commercial plots including that of Margalla Tower building that was partly collapsed during 2005 earthquake and is still horrifying people with deserted structure in the heart of the city.