3 days ago
Vadaj land prices up 15-fold in 10 yrs, Kandla port trust surrenders plot
Ahmedabad: In proof of the city's booming real estate market, land prices in the western areas have skyrocketed over 15 times in just one decade, forcing Deendayal Port Trust (DPT) in Kandla to surrender a prime plot in Vadaj back to the Ahmedabad Municipal Corporation (AMC).
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This price increase came to light when the AMC's standing committee approved the DPT's request to surrender a 1,945 sq m plot in Vadaj village on Thursday. The plot, originally allocated in 2010 for a guesthouse at Rs 14,000 per sq m, was revalued at Rs 2,15,927 per sq m in 2020 — a 1,442% increase. If the plot were to be revalued again, the price could potentially be higher.
The case dates back to July 2010 when the standing committee approved allocation of the plot in Naranpura TP Scheme No.
29 to DPT.
The AMC set a reserve price of Rs 14,000 per sq m but included a condition requiring payment of any additional amount determined through govt revaluation. DPT initially deposited Rs 2.72 crore based on the reserve price and took possession in Jan 2011.
However, the promised revaluation became a decade-long saga. "Despite the municipal corporation writing to the state govt's valuation department approximately eight times between 2010 and 2019, no assessment was conducted.
The valuation finally occurred in 2020, revealing the huge price appreciation," an official said.
"Following the 2020 valuation, DPT faced a massive financial burden. It was required to deposit Rs 39.27 crore to cover the price difference and an additional Rs 84 lakh for valuation process expenses. DPT appealed to pay up based on the old reserve price, but authorities rejected the request," the official added.
DPT compounded its troubles by failing to fulfil the land agreement's construction requirement.
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The agreement mandated building construction within two years of possession for the designated purpose, but this was not done, in clear violation of the terms.
So AMC ordered that the amount be deposited based on the valuation. It stated that proceedings to reclaim the plot will be initiated if DPT fails to deposit the amount. This prompted DPT to propose surrendering the property instead.
"The standing committee's approval of DPT's proposal means the AMC will now reclaim the plot while returning the remaining amount to DPT after deducting valuation expenses from the amount deposited in 2010," an AMC official said.
