DDA proposes to review reserve price fixation for disposable properties

Jul 12 2014, 15:40 IST
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Delhi Development Authority has proposed to review the reserve price fixation mechanism of its disposable properties. (Express archives) Delhi Development Authority has proposed to review the reserve price fixation mechanism of its disposable properties. (Express archives)
SummaryBetween the rate determined by evaluators and the circle rates, whichever is higher, can be adopted by the Committee as the reserve price.

In view of non-disposal of its properties for the last five years, Delhi Development Authority has proposed to review the reserve price fixation mechanism of its disposable properties, the urban body today said.

The decision was taken during a DDA meeting chaired by Lt Governor Najeeb Jung at the Raj Niwas today.

"It was proposed that the Price Fixation Committee, instead of taking up the last years’ auction rates as the basic point, may consider two rates i.e. circle rates and the highest of the evaluation done by three evaluators as the basis of arriving at a rate",” DDA said in a statement.

Between the rate determined by evaluators and the circle rates, whichever is higher, can be adopted by the Committee as the reserve price, it said.

So far, reserve price of DDA properties was fixed by a Committee chaired by Commissioner (Land Disposal).

The Committee used to fix the reserve price on the basis of average auction price either at the same level as the previous year or used to hike it by 12.5 per cent, DDA said.

In case of non-sale for consecutive two auctions, the reserve price used to be reduced by 10 per cent.

Despite such a mechanism, DDA has not been able to sell its properties for the last so many years.

Therefore, the mechanism of price fixation was reviewed after studying the system of the evaluation of properties by the Department of Disinvestment, Income Tax, among others, it said.

For deciding on the evaluators, it had been proposed that the existing panel of evaluators empanelled with income-tax, banks, insurance companies, among others, can be taken.

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