Mysuru, Sept. 7 (RK&BCT)- Despite criticism from the public and the real estate sector over the high base price of sites in upscale localities — which they claim has directly impacted overall property prices — the Mysuru Development Authority (MDA) has managed to rake in a whopping Rs. 120 crore by successfully auctioning 110 sites across Mysuru city recently.

The MDA, a rebranded version of the Mysuru Urban Development Authority (MUDA), had initiated the online auction process for 200 corner, intermediate and premium sites valued collectively at Rs. 250 crore. The process began at 6 pm on July 31.

This marked the first major initiative by the newly rebranded MDA. The sites up for auction were spread across prominent and emerging localities, including Srirampura Third Stage, Vijayanagar Second, Third and Fourth Stages, Hebbal First and Third Stages, Devanur Third Stage, Kesare Third Stage, Dattagalli and Sathagalli.

The direct bidding phase of the e-auction commenced on Aug. 16 and concluded in multiple stages by Aug. 26, drawing intense participation from eager bidders.

When the auction bid closed, out of the 200 sites put up for auction, 110 sites were successfully sold, generating a revenue of Rs. 120 crore for the MDA.

Speaking to Star of Mysore, MDA Commissioner K.R. Rakshith said that many sites received only single bids, and according to the rules, such sites cannot be considered for auction.

In several other cases, bidders, who had initially bid for the sites, later backtracked and failed to make payments, resulting in a loss of around Rs. 20 crore to the MDA. This issue affected over 40 sites, which will now be re-auctioned in subsequent phases, he said.

As per the auction rules, winning bidders were given a three-day window to pay 25 percent of the total bid amount to the MDA. All bidders who successfully purchased the 110 sites complied with the rule and paid the initial 25 percent within the stipulated period.

High-value sites

During the e-auction, a 50×80 ft. (4,000 sq. ft.) site located in Vijayanagar 4th Stage, 2nd Phase fetched a record price of Rs. 9 crore, translating to Rs. 22,500 per sq. ft. The property was purchased by Muralidhar, a liquor merchant based in Mysuru. He promptly paid the required 25 percent within the three days.

This particular high-price-fetching site falls under the commercial and semi-commercial category. MDA sources said that there is a road in front of the property and another road behind it. The liquor merchant is also believed to own a property directly behind this site. He was especially keen to acquire this site as it strategically benefits his business.

Another remarkable bid came for a 20×30 ft. (600 sq. ft.) site in the same locality, which was sold at Rs. 33,333 per sq. ft., amounting to Rs. 2 crore. However, the winning bidder was unable to make the 25 percent payment within the deadline due to a personal tragedy — the passing of his mother.

He has formally requested the MDA to grant him an extension until Monday (Sept. 8) to make the payment. Although rules do not usually permit such extensions, the Commissioner has the discretion to consider exceptions, especially since this involves substantial MDA revenue.

Intense competition

According to Commissioner Rakshith, these two cases were not isolated. “There were over 20 sites where intense competition among bidders pushed the prices far above market value. This explains why the MDA earned Rs. 120 crore from the sale of just 110 sites in the latest auction,” he said.

“For sites in Kesare and Rajivnagar, bids matched only the base market rates and no additional profit was generated, as the prices did not exceed the stipulated minimum,” he added. The remaining 90 unsold sites will be put up for sale in the next e-auction phase.

Once bidders pay the initial 25 percent, they are given three months to pay the remaining amount. After full payment is made, the MDA will issue title deeds (khatas), granting buyers absolute ownership of their properties.

These sites are outright purchases and not allotments, meaning there is no lock-in period for resale or transfer, as the buyers have paid the full purchase price directly to the MDA.