Haryana Municipal Property Auction: Govt. Forms New Policy
The Haryana government has introduced the Haryana Municipal Property Auction Policy, 2024, which will enable municipalities across the state to sell properties through a secure e-auction system. This policy mandates that municipal corporations identify properties suitable for sale and conduct the auctions through a dedicated online platform.
The Municipal Corporation of Gurugram (MCG) is actively working on identifying the land under its jurisdiction that can be sold via e-auction. According to the Urban Local Bodies (ULB) department, the auctions must adhere to specific procedures, ensuring transparency and efficiency throughout the process.
How the E-Auction Platform Will Operate
The newly designed e-auction portal will be the focal point for all transactions related to municipal property auctions. The portal is currently undergoing internal testing before being officially rolled out. Once operational, the portal will serve several essential functions, including:
- Applicant registration for potential bidders interested in participating in the auctions.
- Listing municipal properties available for auction across Haryana.
- Distribution of auction notices and bid documentation for upcoming property sales.
- Processing payments for the highest bidder after a successful auction.
- Issuing allotment letters and finalizing the conveyance deed execution after full payment.
Prospective buyers, whether individuals or companies, will need to register on the portal and submit the earnest money deposit (EMD) to qualify for participation. Only after successful payment of the EMD will bidders be allowed to engage in the auction process.
Auction Categories and Payment Terms
The Haryana Municipal Property Auction will feature two distinct categories:
- Individual property auctions: Selling properties located at specific sites for specific purposes.
- Multiple property auctions: Selling various plots or shops at a single location.
The reserve price for properties will range from Rs 1 crore to over Rs 5 crore, with bidding increments based on the property value. The first round of auctions will require a minimum bid increment of Rs 30,000 for properties priced between Rs 1 crore and Rs 5 crore. For properties exceeding Rs 5 crore, the increments will start at Rs 50,000 in the first round.
The EMD is fixed at 5% of the reserve price. After the auction, the winning bidder must deposit 10% of the final bid within 98 hours and make the first installment of 15% within 30 days. The remaining 75% must be paid within 120 days, without any interest charges.
Impact of the Haryana Municipal Property Auction
This policy opens up immense opportunities for municipalities to generate significant revenue by auctioning urban land. For instance, in 2022, MCG began efforts to develop vacant urban land across multiple sectors such as 33, 35, 58, and 102. These efforts could generate Rs 10,000 crore in revenue, with projections rising due to recent increases in circle rates.
These urban properties, auctioned through the Haryana Municipal Property Auction system, are suitable for diverse development projects, including residential complexes, commercial spaces, institutional facilities, and critical infrastructure, ensuring long-term urban growth and development.
Conclusion: The Future of Land Sales with E-Auction in Haryana
With the implementation of the Haryana Municipal Property Auction Policy, 2024, the Haryana government aims to revolutionize the way municipal properties are sold, bringing greater transparency, efficiency, and revenue potential. This step will not only benefit the state’s economy but also encourage urban development and provide ample investment opportunities for both individuals and businesses looking to engage in municipal property auctions.
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