Presenting: the CWG apartment that went for Rs 7.2 cr

In what could be termed as a windfall gain, the Delhi Development Authority auctioned the Commonwealth Games apartments on Monday, with the highest bid at Rs 7.27 crore for a flat in Delhi’s Commonwealth Games Village, making it one of the most expensive properties east of the Yamuna.

DDA sold 89 of the 110 flats which were auctioned at a price of Rs 24,193 per square feet. While public sector units and banks made the winning bids for as many as 87 apartments, the Rs 7.21-crore flat was bought by the Delhi State Cooperative Bank. The reserve price for the eighth-floor flat was Rs.5.21 crore and the bid was an increase of 40.23 percent from the reserve price.

[caption id=“attachment_317100” align=“alignleft” width=“380” caption=“The Rs 7.21-crore flat was bought by the Delhi State Cooperative Bank. AFP”]  [/caption]

A total of 218 tenders were received for the flats located in Tower No 1, 9, 14 of the village, according to a press release issued by DDA. DDA officials said some flats did not receive bids at all while in others the bids were rejected due to inadequate papers. Four bids by an Oil PSU was rejected as it did not deposit adequate earnest amount. SBI was the highest bidder in about 25 flats while HPCL emerged first in over ten. Agriculture Insurance Corporation of India, Oil India Limited, Punjab and Sind Bank and Delhi State Cooperative Bank Limited managed to emerge the highest bidders in four flats each.

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Even though the number of bids were lower than expected, the DDA got 25 percent more than the base price for all the flats. The CWG village flats (with two to five bedrooms each) in East Delhi, located next to the famous Akshardham Temple, were sold at Rs 14,000 to Rs 15,000 per sq ft, much before the Games. The prices of the flats ranged from anything between Rs 1.85 crore and Rs 4.5 crore. “DDA had acquired the apartments from Emaar MGF, a private builder, at Rs 11,000 per sq ft. It had kept a reserve price of around Rs 17,000 per sq ft for the flats, but got up to 40 percent more on some of them,” said an ET report.

And surprisingly, the price commanded by village flats is far higher than for those in east Delhi’s sought-after areas such as Mayur Vihar, Preet Vihar and or Anand Vihar.

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Of the 1,168 flats in the village, DDA currently owns over 700 flats.The scheme to auction the CWG village flats was announced on April 24 and the agency expects to garner over Rs2,800 crore from the sale of these flats.

It had bailed out the developer Emaar-MGF by buying out 333 apartments at a cost of Rs 766.89. After getting the contract for building Commonwealth Games Village at Akshardham, Emaar MGF cited slowdown in the real estate sector and its inability to raise resources to ask for financial assistance from DDA.