Bengaluru: After getting lukewarm response through online bidding, the Bangalore Development Authority (BDA) has decided to go in for an open auction for sale of its 7,800 corner sites. It is also contemplating taking a similar passage for renting out its commercial shops and establishments.
Post demonetisation, a slump in the sale of corner sites has been observed, said BDA Secretary Basavaraju and confirmed of seeking permission from the state government to revert to the open auction process.
The open auction is being contemplated in order to reach out to a larger number of aspirants to ensure they are sold, he added.
While regular BDA sites are sold through an open lottery method, corner sites have always been sold through auction only due to the tremendous response it generates from buyers. These sites are located at Kengeri, Banashankari, Jnana Bharati, Viswabharathi, Anjanapura, HBR Layout and OMBR Layout.
In addition these premiums are priced 20 percent higher than the regular BDA sites, said an official.
In the e-auction, 40 to 50 corner sites are advertised every fortnight through the website. It is transparent where bidders continuously can change their quote to beat other bidders to garner a BDA site.
The entire process lasts a fortnight wherein the bidders have to keep themselves updated, the official clarified.
Post note ban, sale of sites through e-auction has dropped from a fortnightly figure of 35 to a single digit figure of less than 10. This has compelled the BDA to opt for open auction.
“In the open auction, the result about who has got a site is known within hours of the transaction,” the official said.
BDA officials are confident of finding tenants to a number of commercial shops which are still lying vacant, mainly in HSR and HBR Layout BDA complexes, through open auction process.
“There may be a huge number of people who are not tech-savvy and hence are not bidding online. So, we are now contemplating the traditional auction.” Basavaraju clarified.
The e-auction procedure has been in place for the past one decade.
