Buyers allege NBCC ‘selectively cancelled’ bids for 49 flats in premium Sarojini Nagar project — Here's what we know
Dissatisfied buyers in state-owned National Buildings Construction Corporation's Avenue Towers project have approached the Delhi High Court alleging “abrupt” cancellation of their bidding process for 49 flats, as per a Times of India report.
Avenue Towers is a premium residential project in south Delhi's prime Sarojini Nagar area comprising 245 high-end apartments priced over ₹15 crore each. Industry insiders told the paper that this was the largest high-end housing project open to private buyers in Delhi.
The auction was cancelled on 19 August and 17 of the 262 residential units pulled off sale due to “administrative reasons”; then on 28 October the PSE cancelled auctions of 49 flats. As per the report, buyers have questioned the rationale behind which bids were cancelled and called it “selective” and questioned the transparency and fairness of the auction process.
The buyers alleged that their bids were cancelled after the public sector enterprise announcing successful bidders who quoted the highest price, the report added.
Earlier, the NBCC in a regulatory filing said it had successfully sold residential apartments of approximately 8.80 lakh sq ft in Avenue Towers, through an e-auction at total sale value of approximately ₹5,191 crore. It added that proceeds from the sale will be used to finance redevelopment projects of the Centre.
The transaction was completed through an e-auction, and the NBCC will receive equivalent to 1% of the total sale value as marketing fee for facilitating the sale.
The apartments sold by NBCC are located at Avenue Towers on Africa Avenue Marg in Sarojini Nagar, New Delhi. The residential units covered by the transaction span approximately 8.80 lakh sq ft. The total sale value of ₹5,191 crore provides an indication of the scale of the residential property transaction in the national capital.
However, NBCC's regulatory disclosure did not specify the identities of the buyers or provide individual sale prices for the apartments.
NBCC operates in the project management consultancy and real estate sectors and is involved in government-led construction and redevelopment activities.
In this transaction, the company facilitated the sale of residential apartments on behalf of the central government through an e-auction.
Its stated remuneration for the transaction is a marketing fee equivalent to 1% of the sale value, while the proceeds are earmarked for funding central government redevelopment projects.
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