Noida Authority probes plot auctions quoting up to 110 times base price

NOIDA: The Noida Authority has initiated an inquiry into 14 applications that have quoted up to 110 times the base price in an e-auction for a scheme on residential plots last week.

Officials said on Tuesday that the applicants had either filled in the quotations by mistake, or they were trying to influence the auction.

The Noida Authority had put up 241 plots for auction and received 184 applications against them. Of these 184, there were 14 applications where the exorbitant rates had been quoted.

One of the most striking applications that raised eyebrows was that for a 450sqm residential plot in Sector 44B. Although the reserve price of the residential plot was Rs 9.3 crore, one of the applicants quoted a whooping Rs 1,125 crore for it.

Similarly, a 350sqm plot in Sector 44 that had a reserved price of Rs 4.9 crore received a bid of Rs 49.7 crore.

A 112.5sqm plot in Sector 105, which had a reserve price of Rs 94 lakh, received the top bid of Rs 11.9 crore.

When the quotations came to light, a group of other applicants approached the Noida Authority and lodged complaints, alleging that some attempts had been made to influence the e-auction process for the plots.

Officials said the Authority has now ordered an inquiry into the 14 applications. They said they would forfeit the earnest money – 5% of the reserve price of the plot – for the 14 bidders in keeping with the terms and conditions. This money would be forfeited if the bidders fail to deposit the money they have quoted.

At least 10 of the 14 applicants have now claimed before the Authority they entered the prices by mistake.

In case, the top quotation is cancelled, the plot would be offered to the second-highest bidder.

The remaining 170 plots, the officials said, have received bids worth Rs 636.1 crore against the reserve price of about Rs 492.1crore.

“Among the 170 plots, the highest bid we received was about 126% of the reserve price. In total, the Authority received an additional revenue of about Rs 144 crore,” an official said.

The e-auction proceedings for the residential plot scheme were undertaken between October 19 and 21.