North MCD to auction properties to raise funds

In order to strengthen its financial condition, the North Delhi Municipal Corporation is in the process of auctioning its 45 properties. Estimates suggest that the civic bodies can raise about Rs 300 crore by auctioning its 45 shops, flats and vacant plots. The properties, which go under hammers, are 21 Municipal shops situated at Asaf Ali Road, three vacant plots in different localities under its jurisdiction and 21 built-ups which include quarters, shops and offices. The Corporation is calling bids from interested parties to participate in online auctioning.

According to a senior official of the Remunerative Project (RP) Cell, minimum reserved price for 21 shops of different sizes at Asaf Ali Road are fixed between Rs 90 lakh to Rs 2.05 crore. Similarly, for three plots measuring between 214.04 square metres to 481.60 square metres, the civic body has fixed minimum reserved price ranging from Rs 7.07 crore to Rs 12.12 crore. 

“For the four residential units at Nimri Colony, the Corporation has fixed minimum reserve price of Rs 1.51 crore for each unit. Minimum reserve price of the remaining 17 shops and office units has been fixed between Rs 45 lakh to Rs 2.07 crore,” the official said.

Chairperson of RP Cell, Shyam Bala claimed that auctions are being done to increase the revenue. “Our financial condition is known to everyone and we are committed to provide better civic services to the citizens in our jurisdiction. It is an attempt to generate revenue from our own resources. 

Revenue earned after auctioning these properties will be utilised in providing better civic services and infrastructure in the Corporation’s areas,” said Bala.

The move is seen as an attempt of the cash-strapped civic agency to fatten its empty coffers. The civic body is reeling under financial crisis since its trifurcation in 2012. As a result of the financial crisis last fiscal, the agency had witnessed strike of sanitation workers and other Municipal employees and was forced to divert money from other heads to pay salary. 

“The Corporation is reeling under loan of nearly Rs 2,500 crore. The Corporation owns Rs 1,500 crore to the Delhi government, Rs 750 crore to the contractors and remaining loan amount is that of money diverted from other heads and the amount withdrawn from provident fund head to pay salary of employees hence the need of the hour is to generate revenue to minimise the gap,” said Leader of the House Vijay Pakash Pandey.