NAGPUR: The Nagpur Municipal Corporation (NMC) has made a significant stride in augmenting its non-tax revenue by finalizing a ₹129 crore deal for the revitalization of the dilapidated Sokta Bhavan at Gandhibagh into a contemporary commercial complex, which will also include a Citizen Facilitation Centre.
This project, undertaken on a design-build-finance-operate-and-sale (DBFOS) basis, stands as one of the highest-value redevelopment contracts for the civic body in recent years, particularly after several unsuccessful attempts to attract bidders.
On November 6, the civic administration issued a Letter of Acceptance (LoA) to PrafulVed Infra Ltd, whose lump-sum offer of ₹129 crore was the highest bid. This proposal received approval from the standing committee and was ratified by municipal commissioner Abhijeet Chaudhari. The developer is also required to pay an additional ₹4.5 crore premium within 30 days of the effective date. As per the LoA, the company must provide a performance security of ₹7 crore, create a Special Purpose Vehicle (SPV), and enter into the development agreement within the specified timeframe.
Previously, the TOI reported that Sokta Bhavan had been underutilized for over a decade due to disputes, tender delays, and structural issues. Constructed in November 2003 at the south-west corner of Gandhibagh Garden, the building housed a library and NMC’s Gandhibagh zone office but has remained abandoned since those institutions relocated. The project was originally envisioned by former mayor Dayashankar Tiwari during his chairmanship of the standing committee in 2012-13.
The NMC attempted to attract bids in 2016, 2019, 2021, and twice in 2024-25, but none were successful. Eventually, the civic body reduced the base price by 11%—from ₹144 crore to ₹128 crore—to stimulate interest from developers, addressing concerns that the valuation may have been too high for a project that demands substantial investment. This revised amount was subsequently approved by the high-level policy committee.
PrafulVed Infra chairman Praful Deshmukh informed TOI that the original project area underwent considerable modifications over the years. “Initially, it was 67,000 sq ft. Following objections from local residents, it was scaled back to 37,000 sq ft—approximately 3,500 sqm,” he said.
The company plans to construct a taller structure, proposing three basement levels along with a building that will have ground plus 16 or 17 floors. “Parking is a significant concern in that region, so we aim to maximize space. One basement will accommodate around 200 to 250 two-wheelers per floor, while the other two will cater to four-wheelers. Our goal is to provide parking for approximately 1,000 two-wheelers and 250 four-wheelers,” explained Deshmukh.
Facing a decline in tax revenues and ongoing budget deficits, NMC seeks to capitalize on old and unused properties. “Sokta Bhavan has been a dormant asset for years. Redeveloping it into a valuable commercial complex will offer long-term revenue in addition to the upfront ₹129 crore,” stated a senior NMC official.
As per Deshmukh, construction could commence soon after all formalities are completed. “If everything proceeds smoothly, we aim to begin work by January. Our objective is to achieve possession of the ground and first floors by January 2027 and complete possession of the entire building by January 2028,” he added.
The project is expected to alleviate congestion in the busy Gandhibagh wholesale market by introducing organized commercial spaces, wider corridors, and structured parking, alongside an integrated Citizen Facilitation Centre to enhance civic service delivery.
With the Sokta Bhavan agreement finally in place after a prolonged struggle spanning a decade, officials believe this could serve as a model for the modernization of aging municipal properties throughout Nagpur.
