GDA Raises Commercial Property Prices…..
The Ghaziabad Development Authority (GDA) has decided to increase the reserve price of its commercial properties to cover unexpected costs incurred for constructing Economically Weaker Section (EWS) flats. This decision was made during a GDA Board meeting chaired by Divisional Commissioner Selva Kumari J.
The reserve price is the minimum amount at which properties can be sold, and it varies based on the location. For example, the reserve price for GDA’s commercial properties in Indirapuram was Rs 1.5 lakh per square meter. With the hike, it will now be Rs 1,58,700 per square meter. Similarly, in Pratap Vihar, the reserve price was Rs 48,000 per square meter, which will increase to Rs 56,700 per square meter. In the Madhuban Bapudham housing scheme, the new reserve price will be Rs 84,300 per square meter.
The reason behind the price hike is the additional cost of Rs 27.1 crore that GDA had to bear for constructing EWS flats in 2010. The authority had built 348 EWS flats in Pratap Vihar’s Sector 11 and 560 units in Rajendra Nagar’s Sector 2. While the state government was supposed to share a part of the construction cost, it escalated over the years, leading GDA to bear the additional cost.
GDA intends to recover this cost by increasing the prices of its commercial properties. However, there are still 31,500 square meters of commercial properties that have not been sold yet. Additionally, the GDA Board also approved the Detailed Project Report (DPR) and layout plan of Wave City, developed under the state’s hi-tech township policy. This approval will allow around 5,000 homebuyers to get their flat registries.
The issue regarding Wave City dates back to 2009-10 when the UP government notified around 8,700 acres of land along NH-9 for the hi-tech township policy. In 2017, the Comptroller and Auditor General (CAG) raised concerns over GDA’s concessions to two developers, including Wave Group, estimating a loss of Rs 572 crore to the exchequer, with Rs 401 crore calculated as dues by the Wave Group.
Despite developing half of its 4,196-acre allotment and handing over possession to 12,000 homebuyers, the Wave Group has not received official communication regarding the issue and declined to comment.
In conclusion, GDA’s decision to hike the prices of its commercial properties aims to recover the additional cost incurred for constructing EWS flats. This move, along with the approval of Wave City’s DPR, reflects the authority’s efforts to address housing needs and promote development in the region.
Read more: Urban Local Bodies Seek Status Report on Private Builders’ Proposals for Revenue Road Land Purchase
