MYSURU: In a move that may quell concerns from developers, activists, and politicians regarding a potential scam in the online auction of Mysuru Development Authority (MDA) sites, approximately 118 bidders have approached the authority to finalize paperwork for auctioned sites since the start of the month.
The top bidder for a 745 sqft plot in the II phase of Vijayanagar IV stage, West Mysuru, has placed a staggering bid of Rs 2 crores, while another bidder has quoted Rs 9 crores for a larger 4,133 sqft plot. Both have visited the MDA office to complete formalities.
Buyers will need to pay around 7% in stamp duty, increasing the overall sale price. The bidder for the Rs 9 crore plot must pay an additional Rs 63 lakh in stamp duty, while the Rs 2 crore bidder is responsible for Rs 14 lakh.
This situation has drawn attention from developers, as the high prices for relatively small plots raise questions. Many believe buyers could have opted for larger plots elsewhere in the Tony layout, which is claimed to be India’s largest with over 20,000 sites.
MDA’s in-charge commissioner, KR Rakshith, confirmed that the two bidders have approached the authority to finalize their purchases. He mentioned that roughly 1,200 buyers expressed interest in 200 different auctioned sites in August, with 118 proceeding to complete their purchases. Around 45 plots with only one bidder were rejected.
Rakshith informed TOI that the two corner sites are likely to be acquired by the highest bidders. The top bidder for the 4,133 sqft site has inquired about payment methods to finalize the deal, while the one interested in the Rs 2 crore plot has confirmed intentions to proceed.
The MDA commissioner dismissed claims of any collusion regarding the site auction.
D. Srihari, chairman of CREDAI’s Mysuru chapter, expressed concerns about possible collusion influencing the inflated bids for small plots in Vijayanagar, warning that this trend could negatively impact real estate development in Mysuru. He noted that plots could be purchased in Bengaluru for the same amount.
R. Raghu, state president of the BJP OBC Morcha, also voiced his shock, highlighting that the average selling price in the area hovers around Rs 7,000 per sqft, yet some bids are exceeding three times that amount. He emphasized that these sites are residential, not commercial, potentially leaving local residents unable to afford their own land.
The current guidance value for sites in Vijayanagar is approximately Rs 3,000 per sqft.
