Reserve Price of Chandigarh Housing Board Comm Units Lowered by 50%

After getting nod from its board of directors, the CHB has reduced the reserve price of 14 corner commercial units (on leasehold basis) in Manimajra and Sector 61 by more than 50%. The board had approved reduction in reserve price and change in the computation method.

BY Realty Plus
Published - Tuesday, 14 Sep, 2021

Reserve Price of Chandigarh Housing Board Comm Units Lowered by 50%

After getting nod from its board of directors, the CHB has reduced the reserve price of 14 corner commercial units (on leasehold basis) in Manimajra and Sector 61 by more than 50%. The board had approved reduction in reserve price and change in the computation method. For instance, the reserve price of a corner booth in Sector 61, Kajheri, has been reduced from Rs 1.14 crore to Rs 56.19 lakh, a decrease of 50.71%. Similarly, the reserve price of a corner booth in Manimajra has dropped from Rs 97.99 lakh to Rs 46.72 lakh, a reduction of 52.32%. The board had recently ordered e-tender of 163 leasehold properties, including commercial and residential ones, and 28 residential freehold units. "Board’s chief executive officer (CEO) Yashpal Garg said while calculating reserve prices, the officials changed the computation method for corner shops with both side veranda. After calculation, the effective reduction was Rs 40 lakh to Rs 60 lakh, which was more than 50%," he said. The minutes of the September 8 board meeting, which were approved by UT adviser Dharam Pal who is also CHB chairman, read, “The board decided to discontinue the practice of inclusion of cost for both sides of veranda while fixing the reserve price of corner commercial units. The reserve price of such units will be computed like other units and thereafter it may be increased with a factor of 20% for the locational advantages.” In the wake of poor response to e-tenders of commercial and residential properties on leasehold, the CHB decided to reduce the reserve price of vacant properties in its board of directors meeting. It was decided to reduce the reserve price of leasehold units: commercial by 20% and residential by 10%. Properties that have been put on e-tender include 28 residential units on freehold, 31 residential units on leasehold and 132 commercial units on leasehold. The eligible bidders can submit their bids from 10am on September 15 to 10am on October 8. Bids for 191 properties will be opened at 10.15am on October 8. The board did not get a good response in its recent auction for commercial and residential properties on leasehold. It had invited e-tenders for the sale of 149 commercial and 33 residential units on leasehold. Of 149 commercial units, it could only sell two. The reserve price of the two commercial units was Rs 1.06 crore and they were sold for Rs 1.09 crore. Out of 33 residential units, only two could be sold. The reserve price of these units was Rs 89.83 lakh and the highest bids received was Rs 90.85 lakh.