The Noida Authority officials told the media that the applications have either been filled in the quotations either by mistake or some vested interests are trying to influence the auction.
The Noida Authority had put up 241 plots on auction that received 184 applications. Of these 184 applications the Authority officials were surprised by the exorbitant prices quoted by the 14 applications.
For example, a 450 sq meter plot in Sector 44B that had the reserve price of Rs. 93 crore received a bid of 1,125 crore for it. Similarly, a 350 sq meter plot in sector 44 that had a reserve price of Rs. 4.9 crore received a bid of 49.7 crore.
A 112.5 sq meter plot in Sector 105, which had a reserve price of 94 lakh, received a bid of 11.9 crore. All these exorbitant bidding made the Noida Authority officials smell the rat.
After the opening up of quotations, many bonafide applicants approached the Authority to lodge complaints, alleging that there is an organised effort to influence the bidding process.
Thereafter, the Noida Authority officials initiated enquiry into the 14 applications quoting exorbitant process. As per the Authority norms the officials can forfeit the 5 per cent money of the reserve price of the plot for these bidders as per the existing terms & conditions.
In their clarification, out of the 14 exorbitant quoted prices, 10 have thus far come out with the statement of having quoted the price by mistake. Noida Authority officials maintain that if these highest bidders would be disqualified then the second best bidders will get the chance of allotment.
Overall the Noida Authority has received bids worth Rs. 636.1 against the reserve price of Rs. 492.1 crore for a total of 170 plots.
The e auction scheme of these plots was undertaken between October 19 and 21.
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(The writer is CEO, Track2Realty)
