LUDHIANA: A 77-unit neglected property attracted no bidders at auction, extending an 18-year failure streak for the Ludhiana Improvement Trust (LIT), which had hoped for a valuation of ₹197 crore.
The government-backed developer must now reevaluate the reserve price, while the 2.22-acre Rani Jhansi Road site remains an unappealing structure after local officials dismissed internal warnings about its excessive reserve price negatively impacting the sale. Local developers had previously shunned it, even with a reduced valuation of ₹154 crore under a prior administration.
This inaccessibility has hindered the LIT’s latest revenue generation efforts. The prime commercial building has endured through multiple political regimes, unsuccessful plans to convert it into tax offices and jewelry markets, and ongoing internal disputes regarding its valuation.
LIT Chairman Tarsem Bhinder acknowledged the auction’s lack of interest but assured that the agency would make another attempt. Bhinder plans to propose a review and possible reduction of the reserve price to the district deputy commissioner, who heads the local rate fixation committee.
Agency officials attributed the failure to a broader market slowdown and an inflated reserve price. However, internal disagreements have surfaced regarding the valuation. One anonymous official remarked, “Senior management ignored clear warnings to lower the reserve price before bidding began.”
The failed auction underscores a state government initiative to liquidate valuable public land assets. Bureaucrats admitted that conducting the auction a few months earlier might have taken advantage of better market conditions.
Situated in a busy commercial area, the complex includes a double basement, shops, showrooms, banks, restaurants, and penthouses. Instead of boosting local commerce, the property has turned into an eyesore featuring broken windows, damaged doors, and overgrown weeds.
This auction failure represents the latest instance of nearly two decades of administrative stagnation. LIT officials stated they would revise the auction conditions before attempting another sale in the coming weeks.
