MYSURU: In a surprising turn of events that may quell concerns among developers, activists, and politicians regarding potential fraud in the online auction of Mysuru Development Authority (MDA) sites, approximately 118 bidders have approached the authority to finalize the purchase of auctioned sites from earlier this month.
The highest bid recorded was for a 745 sqft plot in the II phase of Vijayanagar IV stage, West Mysuru, which fetched an astonishing Rs 2 crores. Another bidder offered Rs 9 crores for a 4,133 sqft plot. Both bidders visited the MDA office to finalize the necessary documentation.
Additionally, buyers must account for around 7% stamp duty, which raises the total sale price. The bidder for the Rs 9 crore plot will incur an extra Rs 63 lakh in stamp duty, while the purchaser of the Rs 2 crore plot will have to pay Rs 14 lakh.
This development has sparked concerns among developers, given the exorbitant prices for relatively small plots. Critics argue that for the same amount, buyers could have purchased larger plots in the Tony layout, which is recognized as India’s largest layout with over 20,000 sites.
MDA in-charge commissioner KR Rakshith reported that two bidders have approached the authority to complete the auction process. He mentioned that around 1,200 buyers had previously bid on 200 different sites auctioned online in August. Among these, 118 are now ready to proceed with their purchases. However, about 45 sites with only one bidder have been rejected.
Rakshith confirmed to TOI that the quoted prices indicate two corner sites are likely to be acquired by the highest bidders. The highest bidder for the 4,133 sqft plot has already contacted MDA for payment information and the sales process. The bidder who offered Rs 2 crores for the 745 sqft plot has committed to completing the auction purchase.
In response to concerns, the MDA commissioner denied any collusion in the site auctions.
D. Srihari, Chairman of CREDAI’s Mysuru chapter, speculated that there might be a push behind the unusually high bids for small plots in Vijayanagar and voiced that this could negatively affect real estate development in Mysuru. He noted that for the same cost, plots could have been acquired in Bengaluru.
R. Raghu, BJP OBC Morcha state president, expressed astonishment at the situation, highlighting that typical site prices in the area are around Rs 7,000 per sqft, while some bids exceed three times that amount. He emphasized that these are residential plots rather than commercial spaces and cautioned that such pricing could sideline local residents’ aspirations to own land.
The guidance value for sites in Vijayanagar is roughly Rs 3,000 per sqft.
