India saw one of its biggest land deals take place in the first ever e-auction conducted by a public sector undertaking (PSU). The auction by the National Textiles Corporation (NTC) of a 2.39 acre plot in Worli belonging to Poddar Mill was finally clinched by Indiabulls Realty for Rs474 crore, which works out to about Rs200 crore per acre or Rs45,000 per sq ft. Indiabulls’ winning bid was much higher than the reserve price of Rs250 crore.
The second highest bidder was Runwal Developers, at Rs 472 crore. Other bidders like DB Realty and Peninsula Land Ltd quoted a little over Rs400 crore.
Indiabulls beat seven other contenders to win the coveted sea-facing property in a close fight that lasted three days after textiles minister Dayanidhi Maran Thursday formally launched the trend-setting e-auction.
“It was quite exciting and encouraging. This proved to be an excellent option because of many factors. Unlike in the manual bidding, the bidder gets multiple opportunities, as quotes are visible to the bidders. It is the best way to ensure transparency and nothing can be better than this for realising the best price,” NTC chairman K Ramachandran Pillai said, in an official release.
“We hope to hold at least 10 more such e-auctions and the prices expected from the sales will go much beyond our target of Rs5,000 crore this financial year,” Pillai added.
The NTC will now be putting the 8.37-acre Bharat Textile Mill land in Worli under the hammer from August 4 to 6. Seven real estate majors have already been short-listed and the NTC has fixed a reserve price of Rs750 crore.
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