After a year, the Chandigarh Administration is all set to hold another auction of the residential and commercial sites in the city. While the tentative reserve price for a residential plot is expected to fetch Rs 53,000 per square yard; the reserve price for a commercial site is being pegged at Rs 3.05 lakh per square yard.

The auction for 64 sites — 35 residential and 29 commercial-will be held at Hotel Shivalikview on October 23.

The commercial sites include five shop-cum-offices in Sector 32-D and one shop-cum-flat in Sector 7-C, besides booths in Sectors 7, 24, 29, 37, 40 and 44.

Going by the tentative figures, the reserve price for a four-marla residential plot (100 square yards) will be around Rs 53 lakh. This is the smallest plot-size category among the 35 residential sites to be put up for auction.

The tentative reserve price for a 7.5 marla plot (187.5 square yards) is expected to be Rs 99.37 lakh. A 10-marla plot (250 square yards) will cost around Rs 1.32 crore. For a 14-marla plot (350 square yards), a buyer will have to shell out Rs 1.85 crore. A one- kanal plot (500 square yards) will cost Rs 2.65 crore. The tentative reserve price for a two-kanal plot (1,000 square yards) will be a whopping Rs 5.3 crore.

The last auction of residential and commercial property was held in December 2007, after a gap of three years. While the reserve price for residential plots in the last auction was around Rs 30,000 per square yard, for the commercial plots, the figure was Rs 1.35 lakh per square yard. The auction saw an average of Rs 50,000 per square yard for residential plots and Rs 2.9 lakh per square yard for commercial sites.

Calculating the forthcoming auction’s reserve price on the formula of “enhancing the reserve price by 5 per cent more than the last auction’s average price of total auctioned sites”, the UT Finance Department has already given tentative figures of the reserve price to the UT Administrator for his approval. The approval is expected in the coming week.

In the small category, four four-marla plots will be auctioned in Sector 42-B; two five-marla plots in Sector 38-D and nine one-kanal plots in Sector 32-D; Sector 38-C; Sector 40-B, 44-A and 46-A. There are only two two-kanal plots in Sector 33-B that will be put up for auction. Six 14-marla plots in Sector 37-A and 40-B will also be put up on auction apart from ten 10-marla plots in Sectors 37 and 40.

“The file with the tentative reserve prices has been sent to the Administrator for his nod. The enhancement is definitely there, but it is subject to the prevailing market rates and the average of the last auction,” said a senior UT Administration official.

Reserve price doubles in four years

* While the UT Estate Office had auctioned the residential sites in 2004 at an average selling price of Rs 25,719 per square yard, this time the tentative reserve price is expected to be more than Rs 53,000 per square yard.

* In the commercial-site segment, the reserve price in 2004 auction was Rs 1.17 lakh per square yard. The forthcoming auction on October 23 is expected to have a tentative reserve price of Rs 3.05 lakh per square yard.

Terms and conditions

* The interested bidder will have to deposit an earnest money of Rs 2 lakh in cash or by means of demand draft to be eligible for participating in the auction

* 25 per cent of the bid accepted by the auctioning officer will be paid at the fall of hammer through a demand draft; failing which the earnest money (Rs 2 lakh) would be forfeited